"in fact, it is at this point that they face a financial double whammy. High earners lose 1 from their personal allowance for every 2 they earn over 100,000, meaning that more of their salary will be taxed at a higher rate. It is also at this salary point that Henrys in England lose access to 30 hours of free childcare for children aged between nine months and four years old, and 2,000 per year for under-12s."
"Add to this that these Henrys who started university after 2006 are more likely to be paying off their entire student loan for longer, and there are clear incentives against higher earnings after a certain point. The consequence is that these people, feeling that the harder work is not worth the additional burden, apparently now shun promotions, work fewer hours or salary sacrifice into their pension pots (a practice that will be curtailed in 2029 due to changes made in the last budget)."
Henrys are high-earning, not-yet-rich white-collar professionals concentrated in London and the south-east. A 100,000 salary triggers multiple disincentives: withdrawal of personal allowance, higher marginal tax rates, loss of childcare subsidies, and larger student-loan repayments for those who began university after 2006. These combined effects reduce the financial benefit of additional earnings and create incentives to avoid promotions, work fewer hours, or increase pension contributions. Regional cost differences make the 100,000 pressure largely London-specific. Policy changes such as curbs on pension salary sacrifice and budget adjustments influence future incentives and the workforce choices of this cohort.
Read at www.theguardian.com
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