Thousands of parents could be out of their own pocket due to a stealth tax that could lose you money.
There may not be any tax increases for people on the new budget, but that doesn’t mean you may lose money.
Chancellor Rishi Sunak may not have hit us with tax increases https://www.birminghammail.co.uk/all-about/the-budget
But it looks like the people collecting child support may run out of cash.
Child benefit is currently £ 21.05 per week for the first child and £ 13.95 for younger siblings. Anyone with children under the age of 16 can request payment.
However, families are no longer entitled to the full payout if one parent earns an annual salary of £ 50,000 or more.
For every £ 100 above the threshold, parents will see that 1% cut their child benefit payments.
You lose it completely when one parent’s salary hits £ 60,000 a year after the sun.
The cap was introduced in 2013 by then Chancellor George Osborne and affected one of eight families at the time.
However, since the limit never rises with inflation, according to data from advisor LCP, every fourth parent is on the best path to losing the payout by 2025.
Sir Steve Webb, financial expert and partner at LCP, said that if the threshold was held until the end of parliament in 2025, thousands of parents would miss it.
This is based on the assumption that wages will increase by 3% every year for the next four years.