Child benefit changes could see higher earners reap pension boost

Analysis from Quilter says gains to be made from Spring Budget changes

Jenna Brown
clock • 2 min read

Changes to the high income child benefit charge (HICBC) announced in last week’s Spring Budget could see higher-earning parents get a significant boost to their pension pots, according to analysis from Quilter.

The advisory business crunched the post-Spring Budget numbers and found parents earning £75,000 could gain £16,000 in child benefit payments and leave themselves £170,000 "better off in retirement under new rules". It explained that a family with two young children, where one parent earns £75,000, could increase their pension contributions from £200 to £600 per month and claim "an impressive" £15,931 over the 12-year period during which their children are eligible for child benefit payments. Quilter said the long-term result would also be to "increase their pension pot by £167,364 at ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

Farmers to take government to court over IHT reform

Farmers to take government to court over IHT reform

Claimants said govt 'failed' to consult with the sector on IHT Autumn Budget

Chris Brayford
clock 26 June 2025 • 3 min read
Advisers push back on IHT plans for pensions

Advisers push back on IHT plans for pensions

Most advisers recommending early pension access and gifting

Sahar Nazir
clock 25 June 2025 • 3 min read
Reform's Zia Yusuf hits back at Britannia Card criticism

Reform's Zia Yusuf hits back at Britannia Card criticism

Tax expert has argued it could cost £34bn

Jen Frost
clock 24 June 2025 • 2 min read