As part of the 2012 Budget, Child Benefit will be withdrawn from higher rate taxpayers if a memeber of the household has an income of more than £50,000. To avoid a "cliff-edge" effect, Child Benefit will be withdrawn at a rate of 1% for every extra £100 earned over £50,000 allowing an additional 750,000 families will keep some or all of their Child Benefit.
A range of other measures affecting those on a low income were also announced:
- The tax-free personal allowance will rise by £1,100 from April 2013
- The tax allowances for people aged 65 will be frozen and stopped for anyone turning 65 after 5 April 2013.
- There will be a new, single tier pension for future pensioners and an automatic review of the State Pension age
- The national minimum wage will be increased
- 100 per cent relief on Council Tax will be offered to servicemen and women serving overseas.
You can find out more about these new measures and their potential impact on the Turn2us website