Cuts to child benefit will see one million families pay 52% tax with some losing more than 70p in every pound

More than a million families will lose over 50p in every extra pound they earn under plans to cut child benefit for the better off.
Figures show those with  at least one earner on more than £50,000 a year will be hit by crippling marginal tax rates the Government has vowed to abolish.
In some cases families with large numbers of children will see more than 70p removed for every extra pound they earn.

Cut: George Osborne is planning to cut the benefit if one or both parents is earning more than £50,000, and stop it altogether when one earner receives £60,000

At present, all parents with young children are given the benefit, which is worth £20.30 a week for the first child and £13.40 for each subsequent youngster.
For a couple with two children, it is worth £1,752 a year.
Now George Osborne is planning to cut the benefit if one or both parents is earning more than £50,000, and stop it altogether when one earner receives £60,000.
But the 1.2million families this week receiving letters telling them they will lose out in January may be unaware of how hard  they will be hit. 
The Chancellor has set up a ‘tax taper’, which will see families lose 1 per cent of the benefit for every £100 earned over £50,000.

Calculations: Mike Warburton, a director of accountancy giant Grant Thornton

According to figures drawn up by Mike Warburton, a director of accountancy giant Grant Thornton, those with one child who are already paying 40 per cent income tax and another 2 per cent in National Insurance will lose £1,056 a year.