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Explained in plain English

How much can I lose?

A pay rise pushing your adjusted net income over £100,000 means losing all government childcare support. This 'cliff edge' can wipe out tens of thousands of pounds in free childcare for working parents and tax-free childcare, making a small pay increase financially devastating for families.

Stories that explain this

A £1 pay rise costs UK parents £10,000s in childcare

Related explainers

Why is the £100k limit fixed? How can I keep my benefits? How does UK childcare compare? What is the wider UK impact? Why are banks making so much? Why boost production so much? Why borrow so much? Can a building lose its listing?

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