Child Benefit Changes Start Today

Child Benefit Changes Start Today.

One million families will see their Child Benefit “family allowance” stop today.

Controversial rules where benefits stop if one parent in a family earns in excess of £60,000 and reduced benefits if one parents earns over £50,000 start.  

This has been dramatically opposed by many people as unfair.

Our view
We must agree and suggest the Government have got this all wrong.  How can two parents each earning £40,000 per year, a total household income of £80,000 continue to receive benefits whereas a family with one earning £60,000 and the other parent earning nothing receive none?

This must have come about because HMRC and the Benefits Agency cannot monitor basic rate taxpayers, but can easily monitor higher rate tax payers as they will be submitting self-assessment returns.

The process could have been much simpler, with all families opted out of receiving child benefit and those who qualify being required to apply for benefit.  Instead, the Benefits Agency opted people earning over £50,000 being required to register.  This is all about the Benefits Agency administration costs and not about a fair and equitable benefits system.