CUTS to child benefit could cost a family with three children under six more than £50,000 by the time the youngest reaches 18, according to figures from PwC.
The figure is equivalent to more than a year’s salary after tax for many of those who will lost the benefit – and even for those with two small children, the loss could be nearly £40,000.
PwC’s analysis was based on the sum of benefits which would have been received by a family from January 2013, when child benefit will be withdrawn from households where one person is earning £60,000 or more.
Gordon Singer, tax partner at PwC in Leeds, said: “Our projections show the cost could be substantial, and could ultimately mean many middle income families have to work longer until retirement or until they can pay back debts.”
PwC looked at two hypothetical families: one with three children aged five, three and one, the other with two children aged three and one. The value of these benefits were calculated and expressed in 2029 values, the year the youngest child would reach 18.