Chancellor Hunt Raises Child Benefit Threshold, Aiming to Alleviate Tax Burden for Families

The recent budget announcement increases the child benefit threshold to £60,000, potentially saving families thousands and encouraging workforce participation.

• Jeremy Hunt's budget reforms raise the child benefit threshold from £50,000 to £60,000, allowing more families to retain benefits.
• Families earning up to £160,000 can now claim some child benefit, with the amount received tapering off for higher earners.
• The changes are expected to bring 10,000 more people into the workforce, according to the Office for Budget Responsibility.
• Critics argue the system remains complex and may still trap families in high marginal tax rates, despite the threshold increase.
• The reform aims to make the tax system fairer and encourage work, but further changes are needed to address all concerns.

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