Osborne announces first wave of welfare reform
Child benefit, currently a universal payment to all parents with kids in full time education, will be scrapped for higher rate tax payers. Any household where either parent falls into the higher tax bracket (earning approx 44k) will lose £20.30 per week for the oldest child and £13.40 per week for all other children. A couple with two kids will lose £1752 a year.
There is an anomaly whereby joint household income could be as much as £87,000 with neither parent reaching the higher rate threshold, but overall it’s difficult to argue against Osborne on this one.
In addition, Osborne announced plans to cap the overall benefits received by any single household to ensure that families aren’t better off receiving welfare than going out to work. Exceptions will be made if people are unable to work and therefore receiving disability allowance.
http://www.guardian.co.uk/politics/2010/oct/04/george-osborne-speech-conservative-conference