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Budget 12: Child benefit threshold increased to £50,000

Chancellor George Osborne has revealed child benefit payments will start to be reduced for families where there is a person earning over £50,000.

Giving his Budget statement today, Osborne said families where there is a wage earner with a salary of £50,000 are to lose 1 per cent of the benefit for every £100 that they earn over the new threshold.

Families where there is a person earning over £60,000 will not receive any of the benefit.

Osborne said today that the changes would enable 750,000 families to keep some or all of the benefit.

He said: “We want to avoid a cliff-edge that means people lose all their child benefit when they earn just a pound more.”

Before the Budget, child benefit was due to be scrapped for anyone earning more than £42,475, the threshold at which people pay 40 per cent tax, in January 2013.

The proposals would have meant that a single earner on more than £42,475 would lose child benefit but a couple each earning £40,000 would retain the benefit.

Child benefit is currently paid to parents at £20.30 a week for their eldest child and £13.40 a week for each of their other children.

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