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04/10/2010
High Taxpayers To Lose Out On Child Benefit
Chancellor George Osborne has announced that from 2013 child benefit is to be axed for high rate taxpayers.
In an interview with the BBC, Mr Osborne said it was a "big decision" but "absolutely necessary."
During a time of severe financial pressure, the move would save the government around £1bn a year.
Mr Osborne also revealed the total state benefits one family can claim in future will be capped at about £26,000.
This will mean that no family on welfare will be better off than one earning an average income from work, the chancellor said.
The changes will apply to around 1.2 million families.
Those affected are parents who earn around £44,000 individually, roughly 40% tax level or above.
However single parents and couples on modest incomes would be further penalised.
Each year, child benefit is paid out to 7.7 million families with children, costing around £12bn per year.
Mr Osborne said: "It's very hard to justify taxing people on much lower incomes in order to pay the child benefit to some of the better off in our society."
He said the cut would hit homes with a single or two high earners but families with two parents on separate incomes up to £44,000 - would keep the benefit.
The chancellor describes his plan as "the most straightforward" option - which would avoid across the board means testing.
He added: "But given the scale of the debts Labour's left us with, and given they've left us with no plan and we've had to come up with proposals, we think this is fair.
"It means we're all in this together. Each part of society is going to be making a contribution."
At the moment, parents are paid £20.30 a week for the eldest child and £13.40 for subsequent children, with payments continuing until the age of 19 for those in full-time education.
Regarding single parents and couples on modest incomes, Paul Noon, General Secretary of the Prospect union commented: "They're not people who are rich. They are people who pay their taxes, they are people that work hard and need this sort of income to keep families together and support children."
Barnardos Chief Executive,Martin Narey, said: "There are already many families living in poverty where dad and mum are in full-time work, they have teenage children, very many of them still a long way from a reasonable living standard.
"To take away child benefit from them just because their kids are 14 to 15, would be foolish and very damaging. It would certainly plunge many more families into poverty."
(BMcN/GK)
In an interview with the BBC, Mr Osborne said it was a "big decision" but "absolutely necessary."
During a time of severe financial pressure, the move would save the government around £1bn a year.
Mr Osborne also revealed the total state benefits one family can claim in future will be capped at about £26,000.
This will mean that no family on welfare will be better off than one earning an average income from work, the chancellor said.
The changes will apply to around 1.2 million families.
Those affected are parents who earn around £44,000 individually, roughly 40% tax level or above.
However single parents and couples on modest incomes would be further penalised.
Each year, child benefit is paid out to 7.7 million families with children, costing around £12bn per year.
Mr Osborne said: "It's very hard to justify taxing people on much lower incomes in order to pay the child benefit to some of the better off in our society."
He said the cut would hit homes with a single or two high earners but families with two parents on separate incomes up to £44,000 - would keep the benefit.
The chancellor describes his plan as "the most straightforward" option - which would avoid across the board means testing.
He added: "But given the scale of the debts Labour's left us with, and given they've left us with no plan and we've had to come up with proposals, we think this is fair.
"It means we're all in this together. Each part of society is going to be making a contribution."
At the moment, parents are paid £20.30 a week for the eldest child and £13.40 for subsequent children, with payments continuing until the age of 19 for those in full-time education.
Regarding single parents and couples on modest incomes, Paul Noon, General Secretary of the Prospect union commented: "They're not people who are rich. They are people who pay their taxes, they are people that work hard and need this sort of income to keep families together and support children."
Barnardos Chief Executive,Martin Narey, said: "There are already many families living in poverty where dad and mum are in full-time work, they have teenage children, very many of them still a long way from a reasonable living standard.
"To take away child benefit from them just because their kids are 14 to 15, would be foolish and very damaging. It would certainly plunge many more families into poverty."
(BMcN/GK)
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07 September 2011
Childcare Costs Force Poor Out Of Work
Families on low-incomes across the UK are having to turn down jobs or are considering leaving work because they can't afford to pay for childcare. New research from Save the Children and Daycare Trust also found that parents, regardless of income, say that they can't afford not to work, but struggle to pay for childcare.
Childcare Costs Force Poor Out Of Work
Families on low-incomes across the UK are having to turn down jobs or are considering leaving work because they can't afford to pay for childcare. New research from Save the Children and Daycare Trust also found that parents, regardless of income, say that they can't afford not to work, but struggle to pay for childcare.
29 October 2012
Child Benefit Cuts 'Excruciatingly Difficult'
Welfare reform measures which will see one million letters sent to UK households regarding child benefit cuts have been described by Nick Clegg as "excruciatingly difficult". Households in which at least one person earns more than £50,000 are to have the benefit reduced or stopped.
Child Benefit Cuts 'Excruciatingly Difficult'
Welfare reform measures which will see one million letters sent to UK households regarding child benefit cuts have been described by Nick Clegg as "excruciatingly difficult". Households in which at least one person earns more than £50,000 are to have the benefit reduced or stopped.
11 June 2012
Ministers Expand 'Troubled Families' Scheme
Ministers have announced an expansion to a programme to tackle the problems of "troubled families". As part of the scheme local authorities get financial incentives to tackle some of the 120,000 families said to cost the taxpayer £9bn every year. Ministers have said they want to turn around these families' lives by 2015.
Ministers Expand 'Troubled Families' Scheme
Ministers have announced an expansion to a programme to tackle the problems of "troubled families". As part of the scheme local authorities get financial incentives to tackle some of the 120,000 families said to cost the taxpayer £9bn every year. Ministers have said they want to turn around these families' lives by 2015.
25 November 2004
Low income families burdened by rising schooling costs
The cost of sending children to school is now so high that some parents face spending almost £1,000 a year, according to research undertaken by the Department for Education and Skills. The 'Cost of Schooling' study found that the total average spend for sending children to state schools is £736.22 rising to an average of £948.
Low income families burdened by rising schooling costs
The cost of sending children to school is now so high that some parents face spending almost £1,000 a year, according to research undertaken by the Department for Education and Skills. The 'Cost of Schooling' study found that the total average spend for sending children to state schools is £736.22 rising to an average of £948.
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