It pays not to earn in the UK

Chancellor George Osborne has said child benefit for higher rate taxpayers will be removed, after ministers' hints the policy could be made "fairer". But he has said he would set out in the next months how the policy would be "implemented". It was acknowledged there was an issue with the £42,475-a-year threshold - amid criticism the changes unfairly hit single earner families.

Child benefit is available for every child in the UK below the age of 16 and is one of the few remaining non-means tested benefits. It is worth £20.30 every week for a first-born child and £13.40 for each subsequent child. It is paid to the parent directly responsible for care of the youngster - in practice it is most often claimed by the mother. In October 2010, Mr Osborne announced plans to scrap child benefit for any household with a parent above the 40% tax threshold - currently about just over £42,400.

APA has previously criticised Government for unfairly hitting single earner families and mid-range joint earners - just over the threshold - while a couple both earning just under £44,000 a year each would keep the benefit.

APA said: “We are awaiting news on how government intends to implement the planned cuts.” Members' views are welcomed. 

APA