Millions of families earning less than £60k to see £1,330 paid into bank accounts

Millions of households are set to see an increase in their income due to changes in Child Benefit thresholds. Parents have been alerted that they only have a few weeks left to confirm their details for the renewal of their Child Benefit.

The recent changes mean that more households can now qualify for Child Benefit, or retain more of the money, after the modifications were implemented. Individuals earning up to £60,000 will now be able to keep the entire benefit, an increase from the previous £50,000 limit.

Those with earnings up to £80,000 will be able to retain some of it, an increase from the previous £60,000 limit. The benefit begins to be reduced for those earning between £60,000 and £80,000.

The Government's announced changes are expected to enhance the incomes of millions of parents. Child Benefit is worth up to £1,331 for the first child and £881 for each additional child.

Financial experts have stated that the threshold changes could result in someone earning £70,000 gaining an extra £1,106, having previously received nothing. The closer someone's earnings are to the £80,000 cut-off point, the less they receive in support, reports Birmingham Live.

Everyone earning between £50,000 and £60,000 will now retain the full amount. Letters being sent out between April and July are asking parents to confirm their details relating to whether they still qualify for the payments.

Parents will be asked if their child is still in full-time education or training. These details must be confirmed by parents by August 31.

Rachel McEleney, associate tax director at Deloitte, clarified the changes to child benefit: "The income threshold at which child benefit begins to be clawed back via the High Income Child Benefit Charge will be increased from £50,000 to £60,000. The upper threshold at which it is clawed back entirely will be increased from £60,000 to £80,000."

"If a couple lives together, it is the higher earner whose income is currently considered. As well as restoring the full benefit to those earning less than the new threshold, today's changes mean that those earning between £60,000 and £80,000 will now retain some of their child benefit."

"For someone earning £70,000 who has two children, this means that the net benefit after clawback in 2024/25 will be £1,106.30 rather than nil."

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