Parents see child benefit hopes dashed

mother and baby at home

 mother and baby at homeChancellor George Osborne today provided the news that many parents have been dreading for weeks: that there will not be a U-turn on the Government's child benefit plans.

Higher rate taxpayers are due to face child benefit cuts under the coalition's proposals, with those who fall into the 40% tax threshold likely to be affected.

Mr Osborne said the benefit cuts for wealthier families would be fair in the wider scheme of things.

He commented: "We are very clear that it is fair that those who are better off in our society make a contribution to the saving of money we need to make to pay down the debts, so we will be removing child benefit from higher rate taxpayers."

Remarks from Prime Minister David Cameron earlier in the week had indicated that the Government might be willing to soften its child benefit reforms.

Figures have previously shown that families where one parent's earnings fall just above the 40% tax threshold could see a £2,500 drop in their benefits if they have three youngsters.

If you're worried that the Government's plans could affect your family, check out this guide to see two other benefits which you might be entitled to.