One million to lose child benefit

According to BBC News today, one million households are to receive letters from the UK tax authorities this week, advising them that they are no longer to receive child benefit.

  • Households where at least one person earns more than £50,000 will have the benefit effectively reduced or stopped.

Under the current system, the benefit is paid out to almost 7.9 million families, with 13.7 million children.  According to money saving expert Martin Lewis, those affected by the cuts will lose approximately £545 a year.

Changes

The current child benefit is £20.30 a week for the first child and £13.40 for every additional child.

The BBC say that under the new approach, families where one parent earns between £50,000 and £60,000 will have their benefit reduced on a sliding scale, and will only lose the benefit entirely when earning over £60,000.

It is expected that as many as 500,000 parents may have to complete self assessment tax forms.  Further information can be found here.

 

Source:  BBC news, Child benefit cuts: one million letters being sent, 29th October 2012

Comments for 'One million to lose child benefit'

One Response to One million to lose child benefit

  1. Knitty Mummy says:

    I wouldn’t mind us loosing it (we’ll survive and everyone is experiencing cuts) if only it was fair. Because my husband is a higher rate tax payer, but I don’t earn we loose it, but a family with 2 earners both earning slightly less than the cut off could be bringing in nearly twice my household income but still get child benefit. If we can live without it then so can all those families too!

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