In danger of losing child benefit? Up pension contribution NFU advises

Parents could be better off paying more of their wages into a pension plan to avoid losing their child benefit next year.

From April 2013, an estimated 680,000 families could lose their child benefit, with around 180,000 of these having just one working carer.

Research from NFU Mutual, finds that parents upping their pension contributions could see parents dip below the threshold, allowing their to continue receiving their benefit as well as save towards retirement.

Finance specialist at NFU Mutual, Sean McCann says: “We’re still waiting for the Chancellor to show his hand on this issue but we know that change to the child benefit system is coming for families paying 40 per cent income tax.

“Losing child benefit payments could make a big dent in many household incomes, but for many parents, putting a little more into the pension in order to bring down earnings below the higher rate threshold could help to make the most of their income.”