Danny Alexander faces 'panic stations' jibe over child benefit

The Treasury has confirmed that "penalties" could be issued in cases of non-disclosure of earnings over plans to withdraw child benefit from couples if one parent is on the higher rate of tax.

It follows reports that Treasury sources have said a plan to stop payments is unenforceable.

But in response to a question from Angela Eagle on Thursday, the chief secretary to the treasury Danny Alexander said that was "nonsense".

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