Chancellor to water down child benefit plans

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George Osborne is preparing to alter plans to strip some middle income families of child benefit ahead of a House of Commons debate on the issue.

The Chancellor had previously said that, from January next year, anyone earning above the 40% tax rate threshold of £42,745 a year, would lose child benefit. But the plans have been heavily criticised as they effectively mean a family with two people earning £40,000 - a total of £80,000 - would keep the benefit while one with a single earner on £43,000 would not. Treasury officials are now examining plans to raise the threshold. Conservative MP Mark Reckless, one of the leading Tory opponents of the move, told the Telegraph he was unimpressed by the possible changes and warned the ...

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