Martin Lewis issues HMRC Child Benefit warning that 'nobody else has spotted'

Martin Lewis has issued a Child Benefit warning after "nobody spotted" a hidden detail during the Budget. Child benefit will continue to be based on individual income rather than household income, meaning anyone earning £60,000 or more before tax each year must pay a high-income charge above that threshold.

In a couple where they both earn £60,000 or more, whoever earns the most must pay the charge - regardless of who claims child benefit. Speaking to the BBC, Mr Lewis said: "I'm very disappointed. I don't like unfairness. The way our child benefit is paid is unfair to single parents and single-earner families."

Host Matt Chorley noted that Martin Lewis has "spotted this but no one else has". Mr Lewis wrote on social media: “This is a shame and leaves inequity rife, bad news for single parent and single-earner families.” He said he had campaigned for a change, but Ms Reeves’s decision not to make the change was embedded in background documents produced for the Labour Party Budget.

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Wednesday’s Budget document stated: “The government will not proceed with the reform to base the high-income child benefit charge on household incomes. This is because it would have come at a significant fiscal cost of £1.4 billion by 2029-30 if setting the threshold to £120,000-£160,000, where no families would lose out.”

One parent told Mr Lewis: “I’m a sole income of 50k+ and I have to pay tax on my child benefits. Next door earn 85k across two incomes and don’t pay tax. How is this fair?” Chief secretary to the Treasury Darren Jones confirmed in a written statement that child benefit rates would rise across the UK from April, in line with CPI.

This will bring the rate for the eldest child to £26.05 per week, from £25.60, and for other children to £17.25 per week from £16.95.