David Cameron has had a rethink about the current proposal to scrap child benefits for high earners which has been criticised for its “unfairness’’.
He has suggested that a new system might be proposed in the Chancellor’s March Budget.
It was planned that from next year, child benefit would be removed from any household which has someone earning above the higher-rate tax threshold of £42,745 a year.
This means a family with two people earning £40,000 – a total of £80,000 – will keep the state handout while poorer families, where the mother is caring for the children but her husband earns £43,000 will lose out.
If the government does go ahead with the original plan this will strip child benefit from about 1.2 million families, but will save the Exchequer about £1 billion a year. It will cost a family with three children about £2,500 a year.
Many financially stretched families cannot take this hit on the weekly budget and is feared might push some families into debt.
The cost of living is so high at the moment in the UK but wages are frozen so where are families going to find the extra money from.
All this would do is hit hard working families who are trying their hardest to bring their children up and forcing more mum’s back out to work which would put more greater demands on child care for pre school children.
Please Mr Cameron rethink this decision and give new families the best new baby gift that any government can child benefit.