Child benefit to be scrapped for higher taxpayers!

Child benefit is to be axed for higher-rate taxpayers from 2013, Chancellor George Osborne has announced…

He told the Conservative conference the move – saving £1bn a year – was “tough but fair” and “made sense” at a time of huge pressure on the public finances.

Any couples where one parent earns about £44,000 – roughly the 40% tax level – and above will be affected.

Labour said the benefit should remain universal and the families who wanted to “get on” were being penalised.

Mr Osborne outlined the move in a major speech in which he defended the government’s austerity measures as cuts “not for their own sake” but savings “to secure our future”.

He also said there would be a limit on the amount of benefits a single family would be paid, so it was no higher than the average income a family got from working.

Currently child benefit is paid to 7.7 million families with children, costing about £12bn a year!

The announcement has angered those with children, but been welcomed with those without, many stating that people with children make their own choices to have them, so why should others pay?

So is it a good decision?  Should you be penalised for earning more money? Or should everyone be entitled to the same?

We opened the topic for discussion on twitter, and heres what our followers thought…

@Childcareisfun_ think its bloody unfair! Us workers get hardly anything from the government as it is!!

• @Childcareisfun_ well that ok if your in the northwest of England because the basic salary is only £16000 per year

• @Childcareisfun_ should be on how many children you have not income as mortages in herts where I live much higher.

• @Childcareisfun_ in London that salary doesn’t go very far if only one parent is working.

• @Childcareisfun_ £44k/yr – Child benefit (for 1 child) = £43k/year. I don’t know how the poor middle-class people will cope. *sarcasm*

• @Childcareisfun_ Mr Cameron on the phone… Having second thoughts about cutting child benefit. Concerned he wont be able to afford Mr Clegg without it!

• @Childcareisfun_ My view on Child benefit!? OK make it means tested, on FAMILY income & announce them a reasonable time in advance, eg 5 years!

What do you think about Mr Osborne’s announcement? We’d love to hear your comments!