Trends in child benefit take-up in the UK since 2008

In April 2013, a significant change to Child Benefit (CB) was introduced in the UK: it switched from a universal benefit to a targeted benefit. The new High Income Child Benefit Charge (HICBC) required families to repay some or all of their Child Benefit via the tax system if either partner’s income exceeded £50,000 in a given tax year. This offers the unique opportunity of a ‘natural experiment’ to test the differences in take-up between a universal and a targeted benefit. While attention has focused on the HICBC’s potential disincentive effects on take-up, little is known about how take-up has evolved among lower-income families unaffected by the policy. Using data from nationally representative income surveys from 2008 to 2023 and employing an alternative methodology to that used in official statistics, this study estimates Child Benefit take-up trends. We find that following the introduction of targeting, take-up has declined significantly even among families not subject to the HICBC. We conclude that since the introduction of HICBC, families have incurred substantial cumulative income losses relative to potential entitlement, with the largest proportional losses seen among one-child households with two or more adults. Although this analysis does not establish causality, the findings are consistent with a broader, negative impact of the HICBC reform on the visibility, perceived value, and ultimately the take-up of Child Benefit, even among those not directly targeted by the policy. This case study provides insights and evidence relevant to policymakers considering similar proposals.