Child benefit

2024 - 3 - 6

Child Benefit Shake-Up: What You Need to Know

child benefit threshold Child Benefit - High Income Child Benefit Charge - Jeremy Hunt - child benefit threshold

Jeremy Hunt announces changes to Child Benefit rules in Spring Budget 2024. Find out how families will benefit from the threshold increase and tax rate adjustments!

Jeremy Hunt has revealed significant changes to Child Benefit rules in the Spring Budget 2024. The benefit will now be paid to more families as the threshold for the benefit charge has been raised from £50,000 to £60,000 annually. This move aims to ease the tax burden on parents earning between £50,000 and £60,000, who previously faced a high effective tax rate. Hunt described the previous treatment of Child Benefit in the tax system as confusing and unfair, leading to this much-needed reform.

The High Income Child Benefit tax Charge, which has affected hundreds of thousands of families since 2013, will now be adjusted to alleviate the financial strain on households. Campaigners have long criticized the existing rules, which required repayment of 100% of Child Benefit if one parent earned over £60,000. This change was prompted by extensive campaigning by MoneySavingExpert.com and Martin Lewis, leading to a positive outcome for families across the UK.

In a surprising twist, Chancellor Jeremy Hunt also announced that the high-income child benefit charge rate will now start at £80,000. This signifies a significant shift in the tax structure surrounding Child Benefit, offering relief to more families in higher-income brackets. The threshold increase to £60,000 and the adjustment in tax rates mark a progressive change in Child Benefit policies, addressing issues of fairness and financial support for parents.

To summarize, the recent reforms to Child Benefit rules by Jeremy Hunt in the Spring Budget 2024 are set to benefit a larger number of families, easing the tax burden on middle to higher-income households. The adjustments will provide much-needed relief to parents previously impacted by the High Income Child Benefit tax Charge. With the threshold increase to £60,000 and the new rate starting at £80,000, families can expect a more equitable system for receiving Child Benefit.

Post cover
Image courtesy of "BBC News"

Child benefit to be paid to more families (BBC News)

Previously, the benefit began to be withdrawn when one parent earned more than £50,000 a year. But Jeremy Hunt said the threshold for the benefit charge would ...

Post cover
Image courtesy of "The Independent"

Jeremy Hunt lifts child benefit high-income charge threshold in ... (The Independent)

Meanwhile, the IFS has said parents hit by the charge who earn between £50,000 and £60,000 have effective tax rates for income tax and national insurance of 54 ...

Post cover
Image courtesy of "City A.M."

Spring Budget 2024: Hunt reforms 'unfair' child benefit rules (City A.M.)

"The way we treat Child Benefit in the tax system is confusing and unfair," Jeremy Hunt said in the Spring Budget.

Post cover
Image courtesy of "The National"

Budget 2024: Child Benefit rule change announcement (The National)

Changes to the Child Benefit system, previously labelled “unfair” by Martin Lewis, have been announced by Chancellor Jeremy Hunt.

Post cover
Image courtesy of "Mirror.co.uk"

Child Benefit: Change to 'unfair' charge confirmed in Budget in boost ... (Mirror.co.uk)

Under current rules, if one person earns over £60000 then they need to pay back 100% of their Child Benefit - but campaigners have called this unfair on ...

Post cover
Image courtesy of "GB News"

Child Benefit tax rules stinging families will finally be changed and ... (GB News)

The High Income Child Benefit tax Charge has forced hundreds of thousands to pay back some or all of their Child Benefit since 2013.

Post cover
Image courtesy of "Metro"

High income child benefit charge rate now starts at £80000 (Metro)

Chancellor Jeremy Hunt announced the change to the high income child benefit rate in his Spring Budget after a campaign from Martin Lewis.

<p><b>Spring Budget 2024:</b> Child Benefit shake-up confirmed ... (MoneySavingExpert)

This follows extensive campaigning on the issue by MoneySavingExpert.com (MSE) and its founder Martin Lewis. Currently, some families get less (or no) support ...

Post cover
Image courtesy of "Money Marketing"

Child-benefit threshold to increase to £60000 | Money Marketing (Money Marketing)

The threshold at which parents are charged for receiving child benefit is to rise from £50000 to £60000, chancellor Jeremy Hunt announced in the Budget ...

Post cover
Image courtesy of "Yahoo Eurosport UK"

Income cap on child benefit to rise, Hunt announces in budget speech (Yahoo Eurosport UK)

From this April the high-income child benefit charge threshold will be raised from £50000 to £60000.

Post cover
Image courtesy of "The Guardian"

Child benefit: Jeremy Hunt raises income threshold for tax penalty (The Guardian)

Chancellor says nearly 500000 families will be better off by an average of £1260 in 2024-25 as a result of his changes.

Post cover
Image courtesy of "Whitehaven News"

Budget 2024: Child Benefit rule change announcement (Whitehaven News)

Changes to the Child Benefit system, previously labelled “unfair” by Martin Lewis, have been announced by Chancellor Jeremy Hunt.

Post cover
Image courtesy of "Scottish Daily Record"

Martin Lewis urges older women who claimed Child Benefit to check ... (Scottish Daily Record)

The consumer champion is urging women aged between 41 and 90 to make sure they do not have a State Pension shortfall.

Jeremy Hunt lifts child benefit high-income charge threshold in ... (Yahoo News Australia)

The chancellor lifted the child benefit charge threshold to £60000 which he said will lift 170000 families out of paying the charges altogether.

Post cover
Image courtesy of "Scottish Daily Record"

New Spring Budget change to Child Benefit income threshold will ... (Scottish Daily Record)

The High Income Child Benefit Charge threshold will be increased from £50000 to £60000 next month.

Post cover
Image courtesy of "Mortgage Solutions"

Budget2024: Major shake-up to 'unfair' High Income Child Benefit ... (Mortgage Solutions)

The High Income Child Benefit Charge system's 'unfairness' will finally be tackled, as it will be based on household incomes by April 2026.

Post cover
Image courtesy of "Financial Times"

Child benefit reforms are a well-earned tax cut for parents (Financial Times)

Raising that threshold to £60,000 from next month is a rare piece of good news for parents of young children, who are paying some of the highest childcare costs ...

Post cover
Image courtesy of "IFA Magazine"

Child benefit budget boost for higher-rate tax paying families ... (IFA Magazine)

Laura Suter, director of personal finance at AJ Bell, comments on these changes to the high income child benefit charge saying:

Post cover
Image courtesy of "FT Adviser"

Budget 2024: Advisers must revisit strategies after child benefit ... (FT Adviser)

Advisers will need to revisit their strategies for parents in the wake of changes to child benefit thresholds.

Post cover
Image courtesy of "Financial Times"

Surprise child benefit changes welcomed by UK families (Financial Times)

Nearly half a million households to enjoy average saving of £1260 a year following Budget announcement.

Significant changes to high income child benefit charge (economia)

Child benefit will be recovered based on household income, the Chancellor has announced. This will challenge HMRC's limited resources as it will have to ...

Post cover
Image courtesy of "PKF Francis Clark"

Do child benefit changes signal wider reforms of the tax system ... (PKF Francis Clark)

Two words which do not immediately spring to mind when describing our tax system are simple and effective. Given the laughably lengthy response times from ...

Post cover
Image courtesy of "The Guardian"

'We'll be £1500 a year better off': parent reacts to child benefit tax ... (The Guardian)

Family will no longer have to repay all of benefit – while a keen saver says he is interested in the British Isa.

Explore the last week