- Stopping tax credits to high earners. We will stop paying Child Tax Credits to those earning over £50,000.
At £70,000 per annum, an individual qualifies for nothing at all, based on the same assumptions. Therefore, we aren't talking about a huge impact here, rather a symbolic one. In 2004/05, just 5% of individuals had taxed income above £52,400, equivalent to approximately £58,000 now, and 10% had taxed income above £39,000, roughly equal to £43,000 now.
In short, we're not talking about a huge amount here, and whilst it is media-friendly, in the face of £178 billion, it is merely spitting in the wind.