Chancellor Jeremy Hunt in spotlight after reviewing frozen threshold determining when parents lose child benefit

The frozen threshold determining when parents begin to lose child benefit has come under renewed scrutiny, placing Chancellor Jeremy Hunt in the spotlight for potential budgetary adjustments.

Martin Lewis, founder of, recently wrote to the Chancellor, emphasizing the perceived unfairness of the existing £50,000 threshold.

Notably, this threshold has remained unchanged since its introduction in 2013, despite significant wage increases over the past decade.

Growing Impact on Families:

Initially affecting 13% of families in 2013, the ‘high income’ charge is projected to impact 31% by 2025.

This charge is triggered when one parent’s taxable income exceeds £50,000, with a 100% charge for those earning £60,000 or more.

The freeze on these thresholds has raised concerns about its growing impact on single-income families, prompting calls for a review of the policy.

Martin Lewis’s Appeal to Chancellor:

In his letter to Chancellor Jeremy Hunt, Martin Lewis underscored the unfair consequences faced by single-income families, presenting a poignant case where a bereaved single parent, earning £60,000, was asked to repay child benefit.

Lewis emphasized the public’s concern about this issue and urged the Chancellor to address the structural problems contributing to this perceived inequity.

Lifetime Isa (Lisa) Withdrawal Penalty:

In addition to the child benefit matter, Lewis’s letter also called for the cancellation of the Lifetime Isa (Lisa) withdrawal penalty for first-time homebuyers.

The current penalty applies to Lisa users aiming to purchase a qualifying property worth up to £450,000.

Lewis argued that this limit, established in 2017, has remained frozen despite a more than 30% increase in average house prices, necessitating a reconsideration of the penalty structure.


The call for reform in child benefit rules and the Lifetime Isa withdrawal penalty brings to the forefront issues affecting families and potential obstacles for first-time homebuyers.

As discussions around budget adjustments unfold, the public and policymakers alike will be watching for responses to these appeals for fairness and flexibility.

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