In 2013 the Chancellor has decided to stop child benefit pay-outs of £1752 a year for parents, if one or both parents are earning over £42,475. The cut off is extremely unfair as couple who earn £84,000 collectively will receive child benefit. However, in 2013 if one parent earns 43,000 they will miss out on this benefit. This suggesting that if parents ask for a cut in their salary, it would be more beneficial.

Nikki Hart of CompareJuniorISA.com said: "It seems unfair that a family who earn over £43,000 collectively will not receive child benefit and a single parent earning under the threshold will. Families will find themselves better off if they live alone and relationships may be affected because of this. It is a paradox that parents may ask for pay cuts of reduce hours in order to receive a benefit which was once readily available to them."

The cuts could also result in relationship turmoil as parents may be put off marrying a higher rate tax payer; whilst another couple would keep their child benefit if they split.

Nikki said: "It has never been a more essential time to save. Times are hard and inflation is on the rise, but by saving earlier, it will allow you to meet the costs of children and childcare. Planning ahead and saving with an ISA or opening a savings vehicle for your child; such as the Junior ISA, offered by providers like Family Investment, it will soften the blow of any financial trouble they may find themselves in."

Contact Name:

Nikki Hart

Role:

Editor

Company:

CompareJuniorISA.com

Contact Email:

click to reveal e-mail

Contact Phone:

08458801980

Company Website:

http://www.comparejuniorisa.com