Budget: Child benefit 'cliff-edge' avoided

The limit at which child benefit will be scrapped for families will not be a 'cliff-edge' at the higher rate of tax, Chancellor George Osborne announced today.

Osborne faced calls before the Budget to water down the measure, including from his own party. Removing benefit from any family was "a difficult decision", he said, but "simply cannot justify those earning £15,000 paying for those earning £80,000." Benfit will not be withdrawn until £50,000, rather than the £42,475 expected, and will fall 1% for every £100 earned over £50,000, until an upper limit of £60,000. The benefit, which is available to all families regarless of income, is currently worth £20.30 a week for the first child and £13.40 for each additional child, according to la...