Chancellor announces child benefit changes for higher taxpayers

| October 4, 2010
”Chancellor

Ahead of the Conservative Party Conference in Birmingham today, Chancellor George Osborne has revealed that child benefit is to be scrapped for higher rate taxpayers from 2013.

Currently, child benefit is paid at £20.30 a week for the first child and £13.40 a week for any other children.

For example, a mother of three would receive almost £2,500 per year.

However, as part of the coalition Government’s welfare crackdown, deemed at saving billions of pounds, this latest move will save approximately £1 billion, Mr Osborne told BBC One’s Breakfast Show today.

Osborne defended the move and said “it’s not a decision taken lightly“ but added he thinks it is “a fair measure”.

Families earning over £44,000 will be affected by the move.

The latest move is part of the Government’s spending cuts and Mr Osborne has previously said if action is not taken, we will find our country on the “road to ruin”.

The tough measures are designed to deal with Britain’s record deficit of £155 billion and 39-year-old Osborne has pledged to wipe out the deficit within five years.

Many experts have criticised that cutting deficit too quickly could pose a threat to the economic recovery, possibly pushing the UK back into recession.

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  1. Sue Hankin says:

    Re: child benefit
    Absolutely disagree with latest cuts to this for middle class families. As a single mum, worked my my way through university,juggling two part time jobs and studies to better myself and give my son a better standard of life, this a kick in teeth for us. I live on a council estate and very few go out to work prefering to live on benefits, what incentive are gov’ giving? I now earn above £44,000, fortunately my son now old enough to be employed, after a struggle to put him through university financially and now finally am able to enjoy my hard work! Why is it that the people who put in the effort are the ones victimised by this ‘new’ government? Stay at home and we will reward you for doing this, whilst your neighbour works to support you with their taxes? Wrong, so very, very wrong! Wake up sir, we middle classes are not all born with a silver spoon, some of us have to work to achieve our goals for you to give it all away to those who give you NO THANKS just GRAB all. Extremely disgruntled mum who is NOT affected by your cuts but feels strongly against them.