The limit at which child benefit will be scrapped for families has been increased to £50,000, Chancellor George Osborne announced today.
The government had said it would remove the benefit from any household where at least one member is in the 40% tax bracket - currently on earnings above £42,475.
This limit has now been increased to £50,000.
Osborne faced calls before the Budget to water down the original measure, including from his own party.
Removing benefit from any family was "a difficult decision", he said, but "we simply cannot justify those earning £15,000 paying for those earning £80,000."
Osborne was referring to an unintended consequence of the original measure: that a couple not in the 40% bracket but whose combined earnings were significantly above the £42,475 level would keep child benefit.
Today, he said the benefit would not be withdrawn until £50,000 and would fall 1% for every £100 earned over £50,000, until an upper limit of £60,000.
Osborne said child benefit, which is available to all families regardless of income, is currently worth £20.30 a week for the first child and £13.40 for each additional child, according to latest figures.
Last week, accountancy firm Baker Tilly warned the government's original proposal would also adversely affect clients with family-run businesses.
And in October 2010, shortly after the measure was announced, the Institute of Fiscal Studies estimated the cut would affect one-in-six (1.2 million) families with children, and save the Government £1bn per year.
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