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