Child benefit changes extend tax trap to more parents

'We know that lots of parents are bamboozled by the system'

clock • 3 min read

More working parents could find making pension contributions an attractive option after the recent Budget extended a common tax trap, writes Laura Suter

Among the announcements in Jeremy Hunt's Spring Budget were changes to who is eligible for child benefit. It means that a parent earning £60,000 will be entitled to the full child benefit from next month, where currently they get nothing. The change to the so-called child benefit high income charge means that child benefit will be tapered out once someone earns more than £60,000, rather than the current £50,000 threshold. From April child benefit will be paid at £25.60 a week for the eldest child and £16.95 a week for any subsequent children. That means if someone was previously getting ...

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