What is the £100k income ‘cliff-edge’?

A family with two young children loses roughly £30,000 of financial support that either parent earns, even after earning just £1 more than £100,000 a year, according to AJ Bell. Photograph: Dominic Lipinski/PA

Believe it or not, there are downsides to earning more than £100,000 a year – particularly if you have small children.

“It’s the ambition of many people to reach an income of £100,000, but it does come with an unexpected sting in the tail,” says Sean McCann, a chartered financial planner at NFU Mutual.