Portsmouth councillors say child benefit rules can unfairly penalise Armed Forces families

Portsmouth’s council leader has accused the government of ignoring calls to protect military families from unfair child benefit rules.

In mid-July, Portsmouth City Council unanimously backed a motion arguing that Armed Forces families are unfairly treated under the current child benefit rules.

The High Income Child Benefit Charge reduces child benefit if one parent earns more than £60,000, with payments ending once their income reaches £80,000.

Councillor Leonie Oliver, who proposed the motion, said her husband spent nine months deployed with the Royal Navy last year.

During that time, she said she was “effectively a single parent”, taking on all family responsibilities while having “to put my own career second”.

While deployed, her husband received sea pay and a retention bonus, payments that “rightly recognise the sacrifices made by those serving at sea for extended periods”.

However, the additional income pushed him above the threshold, meaning the family had to repay “some” of their child benefit.

“That experience left us asking a simple question, how can this be fair?”

Cllr Oliver said the current rules meant some military families lost Child Benefit after one parent received extra pay for serving away from home, while couples earning more overall could continue receiving the full payment.

The motion called on the government to review how the High Income Child Benefit Charge applies to Armed Forces families, exempt deployment related earnings such as sea pay and retention bonuses from eligibility, consider using household income instead of individual income.

In response, a HM Treasury spokesperson said: “The government is proud to support the armed forces and their families. This includes giving hundreds of families with a member based abroad up to 20 hours a week of funded before and after school childcare, saving them around £3,400 a year.

“The High Income Child Benefit Charge helps to ensure the sustainability of the public finances and funds our vital public services.”

The Treasury said the High Income Child Benefit Charge was introduced in 2013 and applies to families claiming Child Benefit where one parent earns more than £60,000 a year.

The charge increases gradually until an income reaches £80,000, when the full amount of Child Benefit must be repaid.

It added that parents will soon be able to pay the charge through their payslip instead of completing a Self Assessment tax return each year.

The income threshold was previously £50,000 before rising to £60,000 from the 2024/25 tax year.

In response, Cllr Steve Pitt, who seconded the motion and leads the council said: “It would be nice if the government would actually address the issue we were raising with them.”

He added the council will continue to “lobby for change”.