MP Bob Seely has welcomed a government decision to put more child benefit into the pockets of middle-earning families.
At the present time, workers have to pay a High Income Child Benefit Charge (HICBC) if they, or their partner, have an individual income over £50,000 and are in receipt of child benefit. The benefit is withdrawn completely when they earn over £60,000.
The announcement means that from 6 April 2024, the threshold for paying the HICBC will be raised to £60,000 and the benefit will not be withdrawn completely until an individual earns over £80,000.
The change means around half a million families across the country will save around £1300 a year, and 170,000 families across the country will no longer be required to pay this tax charge at all from next month.
The government says it will help create a stronger economy allowing people to continue working or take up more hours.
Bob Seely MP said: “I welcome this decision which will help support Island families as they work and care for their children.
“This comes in addition to what the government is already delivering for working families across the country.”
This includes:
- All families are eligible for 15 hours free childcare for their three- and four-year-old children.
- Families with a two-year-old who receive some form of support are also entitled to 15 free hours.
- Working families with three and four-year-old children are eligible for 30 hours of early education for 38 weeks of the year – this is a total of 1,140 hour per year.
- From September 2025, the government will introduce 30 hours of free childcare for working families in England with a child between 9 months old up to school age.
- National Insurance contributions are being cut by two pence from ten per cent to eight per cent. This is in addition to the cut announced at the Autumn Statement 2023, meaning the government will deliver a tax cut worth £900 for the average worker on £35,400.
