The move will affect around 15 per cent of UK families and means middle-class parents will lose out on £1,055 a year if they have one child.
Announcing the plan ahead of his keynote speech to the Conservative Party conference in Birmingham, Mr Osborne said the measure would raise around £1bn a year.
He added: "It's a big decision for us, but we think it's absolutely necessary and fair given the financial situation we face."
He confirmed child benefit will be removed from families where either parent earns enough to pay 40 per cent income tax – currently around £44,000. But two-earner households where neither parent's income is above this threshold will continue to receive the benefit.
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