HMRC rule change hands parents in this salary band £2,214 each

HMRC rule change hands parents in this salary band £2,214 each
-Credit: (Image: Reach Publishing Services Limited)


A HMRC rule change means parents earning up to £60,000 could now get an extra £2,214 a year. The income threshold for Child Benefit payments eligibility has been increased from £50,000 to £60,000, mums and dads have been told.

Lowell has warned 54 per cent of UK parents are using credit products to cover essential school costs, finding 13 per cent of parents have used payday loans, while 15 per cent have turned to buy-now-pay-later schemes for school expenses.

John Pears, CEO of Lowell said: “While these credit solutions can offer short-term relief, worryingly, 69 per cent of those surveyed using credit products are concerned about the challenge of repaying them. For some, this could lead to longer-term financial difficulties, including a negative impact on their credit score, which could affect their ability to be approved for credit in the future.”

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Pears added: “As 66 per cent of parents surveyed said they had not reached out for support or advice for back-to-school costs, we want to reassure parents that there are other, often more manageable ways to get support with these costs.

“For example, local authorities or the school directly can provide tailored advice based on your situation, such as uniform grants and subsidiaries towards laptops and tablets for families who require support.” He said: “For many families across the UK, associated back-to-school costs such as uniforms can be difficult to afford, meaning many parents across the UK can find themselves worrying about their finances.

“Though credit can be a tool for helping to spread these costs, many credit products have high interest rates, and if unforeseen expenses occur, keeping up with credit repayments can become increasingly difficult. With this in mind, we wanted to provide parents with some insights and resources to help manage school expenses in the coming weeks. You can find a list of organisations ready to support you at https://www.lowell.co.uk/help-and-support/independent-support/.”