Around 50,000 families are set to be caught up in a tax trap next year due to a “collision” of Universal Credit and Child Benefit rules, according to new analysis.
The Resolution Foundation explained how the two separate systems for Child Benefit and Universal Credit were originally designed to affect two distinct parts of the population.
With the Child Benefit rules, if someone in the household earns more than £50,000, the High-Income Child Benefit Charge kicks in.
