Yes. As the proposals currently stand if your household has one higher-rate taxpayer then this benefit will be cut.  In the current year those earning £44,000 or more are taxed at 40pc on the top slice of their earnings. This limit is usually increased each year in line with inflation. But recent budgets have frozen this threshold, meaning more people are pulled into the higher-rate tax net each year. Now if you get a pay rise that pushes you over this limit, not only will you have to pay more tax on your additional earnings, but you will also lose this valuable benefit.  No. Household income won't be means-tested, so provided both partners remain basic-rate taxpayers they can continue to claim this benefit. This will create some anomalies: after all two couples both earning £40,000 bring home more money than a family where the main-breadwinner earns £50,000 but a spouse stays at home. But it is this second family that will lose their Child Benefit. However, the Government argues that this is the simplest way of targeting this benefit at the families that need it most.  At present parents can claim £20.30 a week for their first child, and £13.40 for all subsequent children. This translates into roughly a £1,000 a year for your eldest child and £700 for each sibling. This money is usually paid directly into the mother's bank account on a monthly basis. For many middle-class families, struggling with higher prices in the shops and national insurance rises this may mean a sizeable chunk out of their family budget – particularly those with two or more children.  A: It is estimated that 1.2m households will now no longer be able to claim this money, about 15pc of the total. It is estimated that this will save about £1bn a year.  The changes won't happen overnight. They are due to take effect in 2013.  People will be required to state on their tax form whether they have children in their household and claim Child Benefit. Once this declaration is made the benefit will be withdrawn from the spouse, even if she is a basic-rate or non-taxpayer.  The Government has said it would be easier if households that will be affected simply stop claiming this benefit.  This is unlikely to be the case, as he will no longer be considered part of the household. However, the Treasury said that further details will be revealed in the forthcoming Comprehensive Spending Review.  If he moves in on a permanent basis and becomes part of your household, then his tax status will be taken into account when assessing eligibility for Child Benefit payments. Again more details are expected in the Spending Review.
More than a million households woke up this morning to discover that their    Child Benefit payments are to disappear.