Military families “penalised” by high income child benefit charge say Portsmouth councillors

Military families should not be “penalised” by the High Income Child Benefit Charge, Portsmouth councillors have said.

Portsmouth City Council has 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?

“A household with a single earner who received additional pay because they have spent months away from their families serving the nation can lose child benefit altogether while another household with two significantly higher earners can continue to receive full benefit simply because neither individual crosses that threshold.”

Cllr Oliver said the current system is “not consistent with the spirit of fairness that families expect from our public institutions”.

“We applaud our serviceman and women for the sacrifices they make but we must also remember that those sacrifices are shared by husbands, wives, partners, children and families at home.

“This issue affects real families who already cope with long separations, uncertainty, disrupted careers and the emotional strain that military life inevitably brings.

“It should not be compounded by a tax system that unintentionally penalises them for the very service their nation depends upon.”

The motion was backed by Liberal Democrat and Labour councillors, as well as Reform UK councillor and Royal Marines veteran Joe Standen.

He said: “Yes it is the parents that received this, however this money is for the service children and they should not be punished for their mother or father going to war and risking their life and potentially making the ultimate sacrifice of never coming home just because they are rewarded for putting their life on the line.”

The motion calls 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, and seek the support of Portsmouth’s MPs to lobby for the changes.

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