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Pension Contribution to Avoid Child Benefit Charge

Find out how much to pay into your pension to escape the High Income Child Benefit Charge (2026/27)

Last updated: June 2026

Child Benefit Charge & Pension Calculator

Enter your adjusted net income and the number of children you receive Child Benefit for. We'll show your current charge and exactly how much to pay into a pension to reduce or avoid it.

How much pension do I need to avoid the Child Benefit charge?

If you or your partner earns over £60,000, the High Income Child Benefit Charge (HICBC) claws back some or all of your Child Benefit through self assessment. This calculator does something most HICBC tools don't: it "goal-seeks" the exact net pension contribution you'd need to make to bring your adjusted net income back down to £60,000 and avoid the charge altogether. It's built for higher earners in the £60,000–£80,000 taper band who want to keep their Child Benefit while boosting their retirement savings.

Because personal pension contributions reduce your adjusted net income — the figure HMRC uses for the charge — redirecting income into a pension can remove the HICBC entirely. The effective tax saving in the taper band is unusually high, which is why this is one of the most tax-efficient moves a higher-earning parent can make. Enter your income and number of children above to see your current charge and the precise contribution that wipes it out.

How it works

For 2026/27, Child Benefit is worth £27.05 a week for your eldest or only child (£1,406.60 a year) and £17.90 a week for each additional child (£930.80 a year). The charge works like this:

Worked example

Sarah has an adjusted net income of £70,000 and claims Child Benefit for two children. Her total Child Benefit is £1,406.60 + £930.80 = £2,337.40 a year.

She is £10,000 over the £60,000 threshold, so her charge is 10,000 ÷ 200 = 50% of £2,337.40 = £1,168.70. To avoid the charge, she pays a net pension contribution of £10,000 ÷ 1.25 = £8,000 (which grosses up to £10,000). Her adjusted net income drops to £60,000, the charge falls to zero, and she keeps the full £2,337.40 of Child Benefit — while £10,000 lands in her pension.

Frequently asked questions

How much do I need to pay into a pension to avoid the Child Benefit charge?

You need to bring your adjusted net income down to £60,000. Because basic-rate pension tax relief grosses up your contribution by 25%, the net amount you pay is your income above £60,000 divided by 1.25. For example, if your adjusted net income is £70,000, a net personal pension contribution of £8,000 grosses up to £10,000 and removes the charge entirely.

What is the High Income Child Benefit Charge in 2026/27?

The High Income Child Benefit Charge (HICBC) applies when one partner has an adjusted net income over £60,000. You repay 1% of the Child Benefit you receive for every £200 of income above £60,000, so the full amount is clawed back once income reaches £80,000.

Does paying into a pension actually reduce the charge?

Yes. Personal and relief-at-source pension contributions reduce your adjusted net income pound-for-pound (using the grossed-up amount). Lowering your adjusted net income below £80,000 cuts the charge, and below £60,000 removes it completely. Gift Aid donations work the same way.

What counts as adjusted net income?

Adjusted net income is your total taxable income (salary, bonus, savings, dividends, rental income, etc.) before personal allowances, minus grossed-up pension contributions and grossed-up Gift Aid donations. It is the figure HMRC uses to decide both the HICBC and the personal allowance taper.

Sources

Figures verified against official guidance: GOV.UK — High Income Child Benefit Charge and GOV.UK — Child Benefit rates. This tool is for guidance only and is not financial advice.

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