Child benefit changes 'wipe £23,000 off' higher income mums' state pension

Tens of thousands expected to be permanently affected

Victoria McKeever
clock • 2 min read

Tens of thousands of mothers with young children could face a £23,000 hit to their state pension due to changes to the child benefit system for higher income couples, Royal London has warned.

The provider said changes to the child benefit system in 2013 could have cost mothers more than £23,000 in state pension rights, based on a 20-year retirement. The total amount in future pension rights lost since 2013 is estimated to exceed £1bn. In January 2013, a ‘high income child benefit tax charge' was introduced. For couples where one partner earns £60,000 per year or more, a tax charge is incurred which wipes out the value of the child benefit.  As a result, around half a million families who were receiving child benefit decided to opt out, and tens of thousands of families hav...

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