Tax 'nightmare' for parents after child benefit reforms

Telegraph coverage of IEA comment on child benefit changes

Last night, the Institute of Economic Affairs said the Coalition’s child benefit reforms are “the single most incompetent change to the benefits system since the Second World War”.

The right-leaning think-tank also accused the Chancellor of unfair “family-bashing” and “penalising marriage”.

Under the new system, any family where one earner takes home more than £60,000 a year will lose all of their benefit. Once the household's highest earner takes home more than £50,000 a year, they begin to lose part of the benefit for every extra pound they earn.

This means a couple where just one partner earns more than £60,000 will lose the extra help, while a couple earning £50,000 each or a single parent earning the same amount would keep their payments .

“This is direct discrimination against couple families, especially single-earner couple families,” said Professor Philip Booth, editorial director of the IEA.

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