Families with income up to £120,000 issued new HMRC Child Benefit rules

Families with annual income of up to £120,000 will be able to keep all of their Child Benefit. The pledge has come from the government ahead of the Conservative Party going to the polls and taking on Labour, led by Sir Keir Starmer, on July 4.

Jeremy Hunt, the Chancellor, said: “Today we have announced a £1,500 tax cut for parents to boost families’ financial security and give them more money to spend on the things that matter most. Raising the next generation is the most important job any of us can do, so it’s right that, as part of our clear plan to bring taxes down, we are reducing the burden on working families.”

A Labour spokesman said: “This is another chaotic scattergun announcement from Rishi Sunak, adding to his list of desperate and unfunded policies that he knows can’t be delivered. Rishi Sunak clearly wants to pretend the last 14 years didn’t happen, because almost all his policies reverse decisions his own party has taken.

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“The choice at this election is five more years of Conservative chaos or stability with a changed Labour Party.” Mr Hunt told the Sunday Times: "Around here (Godalming) the childcare reforms have been pretty popular, but people also do raise the fact that one person earning over £100,000 means you don’t get access to them and that creates a cliff edge.

"Because it was a big commitment (in the budget) we just couldn’t afford to do more when I made the original announcement. But those are things I think we definitely want to make progress on, yes.” He said: "I’ve always said that if you want to be economically productive we have to get rid of the cliff edges in the tax system.”

Mr Hunt added: "The removal of the personal allowance, the fact that childcare support stops when one person in a household is earning over £100,000. If you speak to economists, they will say the most damaging things in the tax system are when you have things with a high marginal rate. So it is absolutely on our list as something we would like to do more on.”