In addition to the usual rules of eligibility, Child Benefit is now means tested which affects all families where one person earns over £50,000. The benefit will still be paid out in the first instance but any benefit paid out will be reclaimed through a new income tax charge known as the ‘High Income Child Benefit Tax Charge’. In effect, one parent could claim and still receive the benefit but it will be paid back by this tax charge from the higher earner’s income.
Rather than instantly removing all of all of the benefit at the £50k threshold, there will be a slow tapering. So for every £100 earned above £50,000 Child Benefit will be paid back at 1%. This means that regardless of how many children you are claiming for by the time the income reaches £60,000 there will be no Child Benefit left.
This withdrawal process hasn't satisfied or resolved the issue of