One in five families set to lose child benefit with 1 MILLION households to get nothing at all under payments freeze
As a result of reforms in 2013, child benefit is gradually withdrawn from families once household income rises above £50k
MORE than one million families are set to lose some or all of their child benefits under a payments freeze, shocking figures reveal.
One in five households will be hit by curbs to the benefits system with 1.4 million affected by 2022.
The Institute for Fiscal Studies also revealed a further one million households will have all their child benefit cut while 400,000 families will lose some of the cash.
Child benefit is currently worth £1,079 per year for the first child and £714 for each subsequent one.
Under reforms in 2013, child benefit is gradually withdrawn from families once household income rises above £50,000.
But the threshold has been frozen since it was first introduced - meaning as more people's wages go up over time, more families pass it.
In the first year of the changes, 13 per cent of families with children, or around a million, lost at least some child benefit - with around 700,000 losing all of it.
The IFS believes by 2019 to 2020, 18 per cent will be affected - 1.4million - and around a million will have lost all of their entitlement.
It said: "In other words, the number of families with children who are affected will have risen by about 36 per cent, or 370,000, in just six years."
They predict that by 2022 more than one in five families with children - 1.6million - could be set to lose at least some of their child benefits.
Are you entitled to child benefits?
CHILD benefit is available to anyone with one or more children from the moment the birth is registered.
The oldest child receives £20.70 per week and any subsequent children receive £13.70 per week.
If you or your partner earns more than £50,000 you may have to pay a tax charge in order to receive it which is called the ‘High Income Child Benefit Charge’.
For those whose gross earnings are between £50,000 and £60,000, the charge to receive child benefit is 1 per cent of the child benefit money you receive for every £100 you earn over £50,000. For example, if you or your partner earns £55,000 the fee would be 50 per cent of your child benefit.
If you or your partner receives £60,000 or more per year, the charge for receiving child benefit is the same as the total amount of child benefit you're eligible for.
You can find out exactly how much you’re entitled to with the Government’s .
The think tank said this potentially shows significant numbers of families who do not have a higher rate taxpayer could end up losing some entitlement to child benefit in years to come.
A Treasury spokeswoman said: "We are spending more than £90 billion a year on working-age benefits and this will continue to rise.
"And we are helping families to earn more and keep more of what they earn by raising the personal allowance, increasing the National Living Wage and doubling free childcare."
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In the end of last year, it was revealed that millions of eligible households had missed to claim over £10billion in benefits.
Meanwhile, benefits are going to be frozen for the fourth year in a row, leaving struggling Brits £200 worse off.
If benefits changes are forcing you onto the streets, here's how you can get help.
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