Get all your news in one place.
100's of premium titles.
One app.
Start reading
Daily Mirror
Daily Mirror
Politics
Danya Bazaraa

Up to one in four families could lose some of their child benefits by 2025 in Budget

One in four families are on course to lose some or all of their child benefit by 2025, it is reported.

Analysis by the Daily Mail claims as many as 250,000 may lose their child benefit by 2025 because the Chancellor did not uprate the salary at which people stop receiving the full amount of child benefit with inflation.

Families stop receiving the full child benefit if one parent earns £50,000 and lose the entire amount if their pay reaches £60,000.

At the time George Osborne introduced the upper cap in 2013, one in eight households are said to have been affected.

But as the salary has not risen with inflation, it could be up to one in four households which lose the benefit by 2025, according to the report.

The analysis, a blow to middle class families, comes after Rishi Sunak announced the latest Budget.

Will this affect you? Let us know in the comments section

George Osborne introduced the upper cap in 2013 (file photo) (Getty Images)

Financial expert Sir Steve Webb told the Daily Mail: "By freezing the £50,000 threshold, the Chancellor will bring hundreds of thousands of families into the child benefit tax net.

"Many of these families are not rich but will now have to go through the hassle of registering for self-assessment and will face additional bills as their wages rise.

"The £50,000 threshold was set in 2013 but has not been increased since, which means that the policy is steadily biting on more and more families.

"If the child benefit tax charge is to be retained, the threshold should be set on an objective basis, and not simply bite more heavily in an arbitrary way year after year."

Chancellor Rishi Sunak pictured before he announced the budget (Jonathan Buckmaster)

He said if the threshold is frozen until the end of the Parliament, an estimated 250,000 will be included - based on an assumption of a 3% increase each year in average earnings for the next four years.

A HM Treasury spokeswoman told the Mirror: “We have a responsibility to target our support to those most in need- which is why it’s fair that we are maintaining the current High Income Child Benefit Charge threshold of £50,000.”

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.