Martin Lewis clears up confusion over child benefit cap

Martin Lewis explained everything you need to know about child benefit caps.Source: This Morning, ITV

Transcript

00:00That's the big confusion.

00:01People are talking about the two-child benefit cap.

00:03So that's still there?

00:04There's never been a cap on the number of kids for child benefit.

00:08What there is, is there's an overall benefits cap

00:10that child benefit counts to.

00:12And if you start earning over £60,000,

00:15one earner earns over £60,000,

00:17then it's clawed back through the tax system

00:19and it's clawed back totally at £80,000.

00:21That's called the high-income child benefit charge.

00:25But there is no two-child limit on child benefit.

00:28The debate in Parliament was about the two-child limit

00:32on universal credit and tax credits.

00:35Universal credit and tax credits are the benefits

00:37that people on lower incomes get,

00:39some working, some not working.

00:41And the way the system works is,

00:42if you had a child after April 2017,

00:45then each child after two children,

00:48the extra costs that they incur you

00:50does not count towards how much you get in benefit,

00:52apart from for childcare

00:54and apart from if you have a multiple birth, say triplets,

00:56because then, for obvious reasons, you know.