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HMRC fail to notify families on cuts

03.01.13

HMRC are under heavy criticism after failing to tell around 300,000 families about the upcoming child benefit cuts.

The estimated number of families affected is 1.1millions, meaning a third of those are yet to be informed. According to reports, 784,000 have been told of the changes. 70% of the 1.1million will lose their child benefits all together.

The cuts, which come into place on Monday, affect those households in which one person has a salary of £50,000 or more. The new legislation came under scrutiny when it was revealed that if, for example, both parents in a household earn £49,000 then the cuts wouldn't affect them, despite having a combined income of £98,000 before tax.

A spokesperson for HMRC said: "There may be cases where people's circumstances have changed, for example their income may have increased or address may have changed, and we will not yet have up-to-date information. However, to ensure people know about the changes we are also using extensive advertising, media and online activity, as well as written communication."

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