CalculatorsChild Benefit charge
What would a pension top-up really cost you?
Earn between £60,000 and £80,000 and you repay some of your Child Benefit. Every £200 you pay into a pension brings back 1% of it, on top of the tax relief.
The working
Where your top-up comes from
- You, from take-home£0
- Tax and NI relief£0
- Child Benefit back£0
Can't do all of it? Part of the way
General information, not financial advice. A simplified model for employed income using 2026/27 rates: Child Benefit £27.05 a week for the eldest child and £17.90 for each other child; the charge is 1% for every £200 of adjusted net income over £60,000, and all of it at £80,000. Income tax and NI use England, Wales and Northern Ireland rates; Scottish income tax differs. Pension money is usually locked away until 57 (55 until April 2028). Speak to a regulated financial adviser before changing your pension.
The worked example
The Child Benefit charge: the hidden tax band between £60k and £80k
With four children, a pay rise at £70,000 is taxed at 63%, more than a millionaire pays. Here's how the charge works, and why it makes a pension payment in that band unusually cheap.