"The Institute for Fiscal Studies (IFS) said that although 85pc of families will continue to receive the benefit after the Government begins a new means-testing policy on Monday, this percentage will fall as wages rise in line with inflation but the threshold for losing the benefit remains at the same level.
Unless the Government changes its mind about the threshold or inflation begins to fall, eventually even families on an average wage will receive no child benefit help from the Government, said Robert Joyce, from the IFS. "The number who will lose at least some child benefit will just increase indefinitely as you go further and further into the future."
Just over eight hundred and twenty thousand families in the UK stand to lose their entire benefit from Monday January 7, while another 320,000 will lose part of it. The affected families will lose an average of £1300 a year.
Under the new system, any family where one earner takes home more than £60,000 a year will lose all of their benefit, while once the household's highest earner is on over £50,000 they begin to lose part of the benefit for every extra pound they earn".