subject: Axe falls on Child Benefit [print this page] Axe falls on Child Benefit
With the Government needing to slash the national debt it is no secret that the Government have been finalising plans to make huge spending cuts. Over recent months there has been much speculation about where the spending axe might fall and finally we have been given a glimpse of the Governments intentions.
From 2013 Child Benefit payments to any family where one parent's earnings exceed 44,000 a year will be axed saving the country 1 Billion a year.
Although spending cuts have been looming on the horizon for some time, such a drastic cut has been criticised by Labour who believe that it will result in hardship for some families who are already struggling to meet the rising cost of living
Due to the simplicity of this plan, it is still possible for some families to earn up to 88,000 without being affected by these cuts as long as no one individual's salary exceeds the 44,000 cap. In response the Government have made it clear that they are very aware of this issue, but that by keeping such plans simple, they can avoid the confusion and bureaucracy that often makes such cuts ineffective
Chancellor George Osborne has responded to such criticism by making it very clear that these are the types of tough decisions that the Government will need to make and stick to if they are to take their 5 year plan to reduce the deficit forward.
Mr Osborne has also announced his intention to cap the maximum amount of benefit that any family can receive to 26,000 per year, matching the same amount as the average family receives in working income
The consequences of such cuts remain to be seen, but what we can be sure of is that this cut will be one of many
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