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.
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