Martin Lewis puts pressure on Jeremy Hunt to fix ‘unfair’ child benefit rules in his next Budget

Martin Lewis puts pressure on Jeremy Hunt to fix ‘unfair’ child benefit rules in his next Budget

  • Threshold at which folks begin dropping the profit has been frozen since 2013

Jeremy Hunt is dealing with contemporary strain to make use of the Price range to repair ‘unfair’ little one profit guidelines which penalise single earnings households.

Martin Lewis, the founding father of MoneySavingExpert.com, wrote to the Chancellor urging him to rethink the £50,000 threshold at which folks begin dropping the profit.

The brink has been frozen for the reason that coverage was launched in 2013, however wages have risen sharply over the last decade.

In 2013, a million households – or 13 per cent – had been affected by the ‘excessive earnings’ cost, based on the Institute for Fiscal Research.

However by 2025, 31 per cent will lose some or all of their entitlement as a result of one mum or dad earns greater than £50,000 a yr.

Martin Lewis, the founding father of MoneySavingExpert.com, wrote to the Chancellor urging him to rethink the £50,000 threshold at which folks begin dropping the profit

The Chancellor appeared as a guest on ITV 's Martin Lewis Money Show earlier in January and asked Mr Lewis to write to him (File Photo)

The Chancellor appeared as a visitor on ITV ‘s Martin Lewis Cash Present earlier in January and requested Mr Lewis to put in writing to him (File Photograph)

The Chancellor appeared as a visitor on ITV’s Martin Lewis Cash Present earlier in January and requested Mr Lewis to put in writing to him.

Within the letter, the money-saving guru highlighted the high-income little one profit cost.

The tax cost is triggered when one mum or dad in a family claiming little one profit has taxable earnings of £50,000 or extra. If one mum or dad earns £60,000 or extra, the cost is 100 per cent of the entitlement.

Mr Lewis mentioned: ‘The high-income little one profit cost unfairly penalises single-income households. This was by far the largest single subject the general public requested me to lift with you.’

Mr Lewis quoted a query from ‘Alan’, who mentioned his son’s associate died 34 days after giving start to twins, and since he earns £60,000 he has been requested to repay the kid profit.

Alan mentioned: ‘This appears grossly unfair {that a} couple can herald almost £100,000 however a single breadwinner loses out as soon as they earn greater than half of this.’

Mr Lewis wrote: ‘I can see few folks arguing that it’s proper that Alan’s son’s household ought to lose their little one profit despite the fact that their complete household earnings is decrease.

Mr Lewis's letter also urged Mr Hunt to cancel the Lifetime Isa (Lisa) withdrawal penalty for first-time buyers (File Photo)

Mr Lewis’s letter additionally urged Mr Hunt to cancel the Lifetime Isa (Lisa) withdrawal penalty for first-time consumers (File Photograph)

‘I used to be more than happy that you just accepted there’s an “unfairness” within the construction that penalises single-parent households, single-earner households, and households the place there’s one dominant earner.

‘Whereas I agree, as you identified, that there are various structural issues within the tax system, this one is exacerbated by the actual fact the £50,000 (and £60,000) thresholds have been frozen since 2013.’

Mr Lewis’s letter additionally urged Mr Hunt to cancel the Lifetime Isa (Lisa) withdrawal penalty for first-time consumers.

It says: ‘You’ll be able to solely use a Lisa on a qualifying property, which is one value as much as £450,000.

‘That £450,000 restrict has remained frozen for the reason that Lisa launched in 2017. Common home costs have risen greater than 30 per cent in that point.’

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