Child benefit reforms: How the changes will affect you
- 4 October 2010
- From the section UK
Child benefit is to be axed for higher rate taxpayers from 2013, Chancellor George Osborne has announced.
Any couples where one parent earns about £44,000 - roughly the 40% tax level - and above will be affected.
BBC News website readers have been sending in their reaction to the announcement.
Helen Pow, Bristol
It's so unfair. My husband is just in this bracket. We have three children and I work two jobs for the NHS in order to make ends meet.
We live in a three bed semi, we both need cars for work, both old cars and last year was our first holiday abroad in years and we paid for that using Tesco vouchers.
We don't live extravagantly, we have bills to pay and just scrape though each month, there is no more room to cut back.
My child benefit pays for my children's swimming lessons and after-school activities. These after-school clubs are all part of growing up and making them well-rounded. It also pays for school trips and lunch money.
Yes my husband pays the higher rate of tax, but that means we pay more tax into the system, why should my children have to have less because of this? Both my husband and I have had our pay frozen.
It's very frustrating. My husband works in construction and leaves the house at 0430 and comes home at 1930 so he works long hours. I am furious and very concerned about our family's future.
Iain O'Neil, Basildon
I'm absolutely fizzing. I earn £44,500 whilst my wife stays at home to look after our one-year-old and takes our seven-year-old to school.
Because of my salary we will lose our child benefit whilst a couple who both work - perhaps have older children enabling them to both work - could earn £80k between them and still get child benefit. And George Osborne says the reason for this is because anything else would be in the "too difficult" box.
Our child benefit only ever goes on things for the children, and with two small children there are always things that they need, like clothes, nappies and shoes.
I accept the government needs to make savings, but it should be a fairer system. I will have to go to my boss and ask for a pay cut so we don't lose this benefit!
Phil Senior, Guildford
I'm 34, started on £8,000 a year when I left school and have worked hard to build a career where I'm now paid £45,000.
My wife is a full-time mum to our three kids and we pretty much live hand to mouth - to lose the £180 per month that we receive in child benefit will be the final nail in our financial coffin.
A reduction or sliding scale for those on top rate tax I could understand, but scrapping child benefit altogether will cause huge financial woe, especially for those just over the threshold.
We live in Surrey where the cost of living is already very high. We want to get on the property ladder but we can't afford to save the £40-50,000 we would need for a deposit.
It is an outrageous and harsh decision - I think the Lib-Con coalition will have underestimated the public outrage this is going to cause.
Liz Smith, Eythorne
This decision will affect me and my family and I'm utterly disappointed that we as higher rate tax payers will take another hit because the government can't control their spending.
My husband and I made a decision to have three children and we both work hard to look after them. My husband is the higher rate tax payer and I work part time and we both contribute a massive amount of tax each month.
I don't understand why we should have to sacrifice yet more of our hard earned money to substitute for the unnecessary expenditure that the government makes everyday.
That money, even though it isn't much, helps just a little towards the standard of living my children have, and it all goes into the pot which feeds and clothes my children.
I earn around £5,000 a year so effectively they are taking a third of my income away from me, how can you call that fair? Why should we be penalised for doing well and working hard? What message does that send out to my children?