- In 2010 Chancellor George Osborne said that child benefit would be cut for high earners. if anyone in a household earned over approximately £42,000 a year, the household would stop getting child benefit (actually they get it but would have to pay it back by the taxman). Cameron defended this plan by saying that it was unfair for high earners to get benefits.
Under the new plans, announced in Chancellor George Osborne's 2012 Budget, the child benefit will be phased out when someone in a household has an income of more than £50,000.
- Politically, the original plan was quite damaging. It angered many Liberal Democrats within the coalition and gave ammunition to Ed Miliband's Labour opposition.
- Osborne claimed that the expense of organising the more complex cut of 1% of child benefit every £100 and over £50,000, would be covered by other efficiency savings given in the budget.