The Uk Government Is Prepared To Axe Child Benefit

By Author: Jack Grayn
Total Articles: 23
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It is yet unclear how the UK government is intends to implement the planned cuts, but it could include HM Revenue & Customs that administer the child benefit system cross-referencing all claimants against their tax records. The UK government is all set to cut child benefit which is continuously getting criticized as highly bureaucratic and unfair for the single earner families. In October 2010, Mr. Osborne declared the plans to scrap child benefit for any household with a parent above the 40% tax threshold - currently about just over £42,400.
In UK, Child benefit is available for every child below the age of 16. For a first-born child it is worth £20.30 every week and £13.40 for each subsequent child. It is paid to the parent who is directly responsible for care of the child. But ministers want to axe the handout for parents earning over £42,725 a year.
According to the critics, the system is unfair and complicated by the fact that this rule applies to a single-wage earner. But if both parents earned, for example, £42,000 each and £84,000 between them their family would continue to receive child benefit. ...
... But the UK government claims that it will save £2.5billion a year from 2013 by starting to means test child benefit which was traditionally paid to all families regardless of income.
On the question of any further changes to the policy, Chancellor George Osborne said: "We're very clear that it is fair that those who are better off in our society make a contribution to the saving of money we need to make... so we will be removing child benefit from higher rate taxpayers. He added that they haven't set out how they're going to implement that and going to do that in the next few months. Are you in urgent need of cash apply with 12 months bad credit loans and get required cash despite having adverse credit.
He also said that it's not fair to ask someone who's earning say £20- or 25,000 to pay for someone who's on £80- or £100,000 to get child benefit. He believes that the proposed cuts could save up to £1bn a year. Shadow Treasury Minister Chris Leslie said that it will be potentially leaving a "black hole" in the public finances and threatening more bureaucracy if people were to be means-tested for the benefit. The UK government has chosen to hit families this time to get the deficit down.

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