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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