Jeremy Hunt 's proposals would double the income threshold at which families start to lose child benefit from £60,000 to £120,000.
Hundreds of thousands of families are set to get a £1,500 'tax cut' after the Chancellor last night unveiled plans to reform child benefit rules.
The scheme is expected to cost £1.3billion and will help 700,000 families dealing with one of the most expensive periods of life. Households affected by the current rules will benefit by an average of £1,500. The Chancellor also pledged to tackle 'unfair' rules which mean a single-earner household on £60,000 a year is penalised while dual-earner families with far higher incomes are not
Rules introduced by then-chancellor George Osborne in 2013 meant that families started to lose child benefit if one adult earned more than £50,000 a year. Rules introduced by former chancellor George Osborne in 2013 meant that families started to lose child benefit if one adult earned more than £50,000 a yearEntitlement above this income level will also be phased out more gradually so that families will continue to receive at least some payments until their income reaches £160,000.
Harriet Baldwin, the former Tory chairman of the Commons Treasury committee, said the high marginal tax rates were a 'terrible deterrent' to work for families caught by them, with a particular impact on women.
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