High marginal rates
The highly respected Resolution Foundation have said that it is the fast growing group of families receiving Universal Credit (UC) who are also having their child benefit withdrawn due to there being an earner in the household on between £50K-£60K.
They face a marginal rate of at least 80% if they have one child and up to 96% if they have three and the main earner is repaying a student loan, 97% if they live in Scotland. It is thought that there are 50,000 families currently in this position. There are UC 250,000 families with someone on £40K-£50K who could find that they get no benefit from a pay rise. The situation is a mess the Resolution Foundation say.