Rishi Sunak said taxes on working families would rise by an average of £2,000 over four years under a Labor government. Photo: Paul Ellis/AFP
Families earning up to £120,000 will be able to keep all their child benefit under new Conservative policy to be unveiled on Friday.
< p>Under current rules, child benefits are calculated based on individual rather than family income. and the threshold is £60,000.
If one parent's earnings exceed this level, the benefit begins to be withdrawn.
The Tories have now committed to basing the system on total household income. instead, a new threshold of £120,000 has been set.
The move would benefit 700,000 households by an average of £1,500 a year, according to Tory analysis.
Jeremy Hunt, Chancellor, said: “Today we announced a £1,500 cut in parenting tax to support 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 only right that we make our clear plans lower taxes, we reduce the burden on working families.”
Mr Hunt said voters had a “clear choice” at this election between “bold action on tax cuts for working families” under the Tories and potential tax rises under Labour.
Senior Labor Party figures said that they want it. taxes for working people will fall as the tax burden has risen to a 70-year high under the Conservatives.
Part of a political blitz
The announcement is part of a Conservative political blitz in an attempt to narrow Labor's huge lead in public opinion polls.
The first week of the campaign included promises to bring back national service, protect the state pension from ever being taxed and crack down on so-called “Mickey Mouse” university degrees.
The second full week of the race saw the Tories double taxes, making a new pledge not to raise a number of property taxes, while Rishi Sunak said taxes on working families would rise by an average of £2,000 over four years under a Labor government.
Sir Keir Starmer, the Labour leader, called the claim, which was repeatedly made in an ITV debate on Tuesday, a lie and “absolute nonsense”.
Child benefit allows parents to claim £25.60 a week for one child and £16.95 a week for each subsequent child.
There is a two-child limit on claims, which some on the left want to scrap, although Sir Keir has refused to promise a change.
The Tories' new moves on child benefits build on the same changes Mr Hunt made to his spring budget.
In his speech to the House of Commons, the Chancellor took aim at the current system, which sees the end of child benefit being judged on individual rather than combined earnings.
The current withdrawal start point is £60,000. It only takes one parent to reach this threshold for the entire family to start losing financial support from the state. Once a parent's or their partner's income exceeds £80,000, they will not be able to withhold any part of their child's benefit.
'High income child benefit charge'
The Tories have dubbed the problem the 'child benefit charge' with high income” and promised to get rid of it.