The Chancellor said Britain can no longer afford universal benefits for the best-paid as it battles its budget deficit.
So from 2013, no household where anyone earns more than £44,000 a year will be eligible for child benefit.
"For higher rate taxpayers, we're going to withdraw this," he told ITV's Daybreak. "It's a tough but fair decision."
He added: "It's just not fair to ask someone who's on £15 or £20,000 a year to be paying for the child benefit of someone who's on £50,000 or even more."
"At any other time, I wouldn't do this. But Labour left us with a heck of a mess."
The Government is also looking at cutting other benefits that currently aren't means tested including winter fuel allowance, and free bus passes.