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Working mother balancing childcare and work, representing government support for UK working families 2025

UK Family Benefits Above £80k and £100k: Child Benefit, Childcare, and More

Tom Townson, FME Founder and Editor

Time to read: 5 minutes
Time to prepare: 15–30 minutes (to gather your National Insurance number, payslips, and child’s birth certificate)
Time to take action: 1–2 hours (to apply online or contact HMRC)
Frequency to stay updated: Every 3 months for childcare; once a year for Child Benefit

If you earn over £80,000 or £100,000, you might think you can’t get government benefits like Child Benefit or free childcare. But there are ways to claim these to save money or boost your pension. This guide explains Child Benefit, free childcare in England, Tax-Free Childcare, and other supports in simple terms, with easy steps to follow. We’re here to help you save time and money, but this isn’t financial advice—always check with GOV.UK or a professional.

What You’ll Need

Your National Insurance number
Your child’s birth certificate
Recent payslips or income details
Details of pension contributions or charity donations
Proof of marriage or civil partnership (for Marriage Allowance)

Benefits at a Glance

This table shows the main benefits, income limits, and child ages they cover:

Benefit	Income Limit	Child Age	Details	Apply Now
Child Benefit	Starts reducing at £60,000; fully repaid at £80,000	Under 16 (or 20 if in full-time education, like college)	£25.60/week (first child), £16.95/week (others)	Apply now
Free Childcare Hours (England)	£100,000 max per parent in child’s household	9 months to 4 years	30 hours/week, 38 weeks/year (from Sept 2025)	Apply now
Tax-Free Childcare	£100,000 max per parent in child’s household	Under 12 (or 17 if disabled)	£2,000/year per child (£4,000 if disabled)	Apply now

Note: Scotland, Wales, and Northern Ireland offer free childcare (e.g., Funded Early Learning in Scotland), but these don’t have income limits, so we focus on England’s scheme here.

What is Adjusted Net Income and Why It Matters?

Your Adjusted Net Income (ANI) is your total income after taking off certain things, like money you put into a pension or donate to charity. It’s what the government looks at to decide if you can get Child Benefit, Free Childcare Hours, or Tax-Free Childcare. For example, if you earn £110,000 but pay £15,000 into a pension, your ANI is £95,000, which could let you claim childcare benefits. Knowing your ANI helps you work out what you can get and how to lower it to qualify for more.

How to Calculate ANI

Start with your total income (salary, bonuses, self-employment profits, etc.).
Subtract:
- Money you pay into a pension (personal or workplace).
- Donations to charity through Gift Aid.
- Tax relief from investments like Enterprise Investment Scheme (EIS, 30% relief) or Seed Enterprise Investment Scheme (SEIS, 50% relief).
- Other deductions like cycle-to-work schemes or trading losses (if you run a business).
The result is your ANI. Try FME’s Adjusted Income Calculator to work it out easily.

Example: Sarah earns £105,000 and pays £8,000 into her pension and £2,000 to charity. Her ANI is £105,000 - £8,000 - £2,000 = £95,000, so she can claim childcare benefits.

Child Benefit: Why Claim When You Earn £80,000+?

Child Benefit pays £25.60 per week for your first child and £16.95 for each extra child, for kids under 16 (or 20 if they’re in school or college). If your ANI is over £60,000, you start paying back some of the benefit through the High Income Child Benefit Charge (HICBC). For every £200 you earn over £60,000, you repay 1% of the benefit. At £80,000, you repay it all. Even so, claiming can be worth it:

Protect Your Pension: Claiming gives you National Insurance (NI) credits, which help you qualify for a full state pension (you need 35 years of credits). This is great for a parent who earns less or stays home.
Help Family Members: If a grandparent or relative cares for your child under 12 for at least 20 hours a week, you can pass NI credits to them through Specified Adult Childcare Credits (SACC). This boosts their pension.

Options for Handling HICBC

Claim and Repay: Apply for Child Benefit and repay the HICBC through your taxes. You can do this via:
- Self-Assessment: Sign up for a tax return to report and pay the HICBC (takes 1–2 hours to set up and file yearly).
- Tax Code Adjustment: Tell HMRC to collect the HICBC by reducing your tax code (e.g., lowering your tax-free allowance), so it’s taken from your salary if you’re on PAYE. Contact HMRC at www.gov.uk/government/organisations/hm-revenue-customs/contact/child-benefit to arrange this.
Opt Out of Payments: Claim Child Benefit but choose not to receive the payments, avoiding the need to repay anything. You still get NI credits and can apply for SACC. Do this when you apply or by updating your claim at www.gov.uk/child-benefit.

When It Might Not Be Worth Claiming

If both parents already have 35 years of NI contributions (check your pension record at www.gov.uk/check-state-pension). Both parents can get NI credits for the same year if you alternate claiming Child Benefit, so it may still be worth it if one parent needs credits.
If no family member needs SACC (e.g., no one provides regular childcare).
Downsides:
- If you claim and receive payments, you’ll need to repay the HICBC, either through Self-Assessment (extra paperwork) or a tax code change (can reduce your monthly pay).
- If you don’t report HICBC correctly, you might face a tax bill or penalties from HMRC.

Tommy’s Tip: Claim Child Benefit if you or a family member need NI credits for your pension, and consider opting out of payments to skip tax hassles. Don’t claim if both parents have enough pension years and you don’t want extra admin.

Steps to Claim Child Benefit and SACC

Check your ANI with FME’s Adjusted Income Calculator.
Apply for Child Benefit at www.gov.uk/child-benefit or with HMRC form CH2 (you’ll need your child’s birth certificate and National Insurance number).
Decide how to handle HICBC: sign up for Self-Assessment at www.gov.uk/self-assessment-tax-returns, ask HMRC to adjust your tax code, or opt out of payments at www.gov.uk/child-benefit.
For SACC, fill out form CA9176 at www.gov.uk/specified-adult-childcare-credits to give NI credits to a family member caring for your child.

Free Childcare Hours and Tax-Free Childcare: Beating the £100,000 Limit

Free Childcare Hours and Tax-Free Childcare can save you thousands on nursery or childminder costs, but you lose them if either parent in the child’s household has an ANI over £100,000. For example, if you live with your child and earn £105,000, you’re ineligible, but if a partner earning over £100,000 lives elsewhere, you can still claim. Here’s how these work and how to get them back.

Free Childcare Hours (England)

From September 2025, working parents in England can get 30 hours a week of free childcare for children aged 9 months to 4 years, for 38 weeks a year. To qualify, each parent in the child’s household must earn at least £2,539 every 3 months (like working 16 hours a week at minimum wage) but not more than £100,000 ANI.

Tax-Free Childcare

This scheme helps with childcare costs for kids under 12 (or 17 if disabled). For every £8 you pay into a Tax-Free Childcare account, the government adds £2, up to £2,000 per child per year (£4,000 if disabled). You can use it for nurseries, childminders, or after-school clubs, even with Free Childcare Hours. The £100,000 ANI limit applies to each parent in the child’s household.

Strategies to Get These Benefits Back

If your ANI is over £100,000, you can lower it to qualify for both schemes. Here are easy ways to do it:

Pay More into Your Pension: Money you put into a workplace or personal pension comes off your ANI. For example, paying £10,000 into a pension drops your ANI from £105,000 to £95,000, making you eligible.
Use Salary Sacrifice: Ask your employer to swap part of your salary for things like pension contributions or bike-to-work schemes. This cuts your ANI without losing much take-home pay.
Make Charity Donations: Donations through Gift Aid lower your ANI. For example, donating £1,000 to a charity could help you qualify. See options on FME’s Charity Page*.
Invest in EIS or SEIS: Putting money into small businesses through the Enterprise Investment Scheme (EIS) or Seed Enterprise Investment Scheme (SEIS) gives you tax relief (30% for EIS, 50% for SEIS), which lowers your ANI. Explore options on FME’s Investments Page*.

Tommy’s Tip: A small pension payment or charity donation could bring your ANI under £100,000, saving you thousands on childcare. Use FME’s Pension Impact Tool to see how it works.

Steps to Apply and Lower Your Income

Check if you qualify with FME’s Childcare Eligibility Checker.
Work out your ANI using FME’s Adjusted Income Calculator.
Talk to your employer about salary sacrifice or a pension adviser about contributions or EIS/SEIS investments (always get professional advice).
Apply for Free Childcare Hours at www.gov.uk/apply-free-childcare-if-youre-working, using your National Insurance number and an 11-digit code you’ll get after checking eligibility.
Open a Tax-Free Childcare account at www.gov.uk/tax-free-childcare and pay into it for approved childcare providers.
Update your eligibility every 3 months at www.gov.uk/sign-in-childcare-account to keep your childcare code active.

Other Ways to Save with Government Support

Even with a high income, you can benefit from these schemes:

Pension Tax Relief: If you earn over £50,270, you get 40% tax relief on pension contributions (45% if over £125,140). This saves you tax and can lower your ANI to unlock other benefits. For example, a £10,000 contribution saves £4,000 in tax at 40%.
Marriage Allowance: If one partner earns under £12,570 (the Personal Allowance, so they pay no tax) and the other earns between £12,571 and £50,270 (a basic-rate taxpayer), you can transfer £1,260 of the lower earner’s Personal Allowance to the higher earner. This saves up to £252 a year in tax. You must be married or in a civil partnership, and the higher earner can’t be a higher-rate taxpayer (over £50,270). This is less common for high earners but can help if one partner earns much less.

Steps to Claim Marriage Allowance

Check if you qualify: one partner must earn under £12,570, and the other must earn between £12,571 and £50,270.
Apply at www.gov.uk/marriage-allowance using your National Insurance numbers and proof of marriage or civil partnership (e.g., marriage certificate).
If approved, the tax saving is applied through the higher earner’s tax code, or you may get a refund for up to 4 previous tax years.

FAQs

Question	Answer
What is Adjusted Net Income?	It’s your income after subtracting things like pension payments or charity donations. It decides if you can get Child Benefit or childcare schemes. Check yours with FME’s Adjusted Income Calculator.
Should I claim Child Benefit if I repay it all?	Claim it if you or a family member need National Insurance credits for your pension, and opt out of payments to avoid tax paperwork. Don’t claim if both parents have enough pension years and you don’t want extra admin.
Can I split Free Childcare Hours between nurseries?	Yes, in England, you can use up to two providers in one day, as long as they’re registered.

Conclusion

You don’t have to miss out on government benefits just because you earn over £80,000 or £100,000. Claim Child Benefit for pension credits, lower your income with pensions or investments to get free childcare or Tax-Free Childcare, and use tax relief or Marriage Allowance to save more. Start with FME’s Childcare Eligibility Checker to see what you can claim. Always double-check on GOV.UK or with a professional.