Child Benefit
Posted: Tue Oct 05, 2010 5:46 am
Yesterday, Osborne announced at the conference that families where one member earns more than ?44K will not get child benefit anymore.
This strikes me as a bit of a strange one.
1. In April numerous Tory Cabinet ministers stated that the party was in favour of universal benefits such as child benefit, winter fuel allowance etc. and that they wanted to keep that universality. I know, politicians lie!!
2. If a family has two kids and one wage earner earning more than ?44K they lose ?1750 a year so from birth to adulthood they drop about ?30K. If a family has two kids and two wage earners earning ?40K each, they lose nothing.
3.This affects 1.2 million families. And the message seems to be a very un-Tory one i.e. strive to earn more and you will be hit to the tune of at least a grand a year if you have kids.
4. Despite stating for months that we should wait for the results of the spending review on October 20th to see what cuts are being introduced, Osborne brings this cut out pretty much in isolation at the Conference.
My guess is that having deservedly taken a pasting re. the Emergency Budget which results in the less well off paying proportionally more than the sectors wealthier than them, the Tories wanted to highlight their "fairness" policy by singling out this measure to say "look we are hitting the well off as well". I would guess that there is a dumper truck of shit coming the way of the less well off on October 20th. and the Tories are hoping that what will stick in people's memory is the well-off being hit on child benefit.
If that is the case, the inherent unfairness in this measure seems to have well and truly backfired for them.
Cheers
D
This strikes me as a bit of a strange one.
1. In April numerous Tory Cabinet ministers stated that the party was in favour of universal benefits such as child benefit, winter fuel allowance etc. and that they wanted to keep that universality. I know, politicians lie!!
2. If a family has two kids and one wage earner earning more than ?44K they lose ?1750 a year so from birth to adulthood they drop about ?30K. If a family has two kids and two wage earners earning ?40K each, they lose nothing.
3.This affects 1.2 million families. And the message seems to be a very un-Tory one i.e. strive to earn more and you will be hit to the tune of at least a grand a year if you have kids.
4. Despite stating for months that we should wait for the results of the spending review on October 20th to see what cuts are being introduced, Osborne brings this cut out pretty much in isolation at the Conference.
My guess is that having deservedly taken a pasting re. the Emergency Budget which results in the less well off paying proportionally more than the sectors wealthier than them, the Tories wanted to highlight their "fairness" policy by singling out this measure to say "look we are hitting the well off as well". I would guess that there is a dumper truck of shit coming the way of the less well off on October 20th. and the Tories are hoping that what will stick in people's memory is the well-off being hit on child benefit.
If that is the case, the inherent unfairness in this measure seems to have well and truly backfired for them.
Cheers
D