The latest figures show that 683,000 families opted out of receiving child benefits as a result of the higher income child benefit charge for year end August 2022, up 5% from 651,000 the previous year.

Families in London and the south east are most likely to opt out of child benefit payments accounting for nearly a third of total opt-outs across the UK, totalling 175,000.

The tax charge raised £405m in a single year, down from £435m the previous year, and the lowest figure since 2016-17. The average tax charge was £1,140 per family.

HMRC said ‘this figure may have been affected by the Covid-19 pandemic, which would be expected to reduce the number of taxpayers and the amount of revenue’.

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