Child Benefits for 40% Taxpayers to Go
The Chancellor, George Osborne has confirmed to the BBC that Higher Rate tax payers will not benefit from child benefits from 2013.
He confirmed that parent earning over £44,000 who pay 40% tax will no longer be entitled to receive the benefit.
It is estimated that 1.2 million families will be affected by the proposed cut.
The Chancellor confirmed that the changes would save the UK tax payer £1 Billion per year.
‘It’s a big decision for us, but we think it’s absolutely necessary and fair given the financial situation we face,’ said Osborne.
‘It’s hard to justify taxing people on much lower incomes in order to pay the child benefit to some of the better off in our society.’
Although unpalatable he confirmed the plans were the most straightforward option.He confirmed that it was a decision that had not been taken lightly. However due to the previous government they were left with little option.
