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Coalition prepares another raid on child benefit
The coalition government is preparing another round of cuts to child benefit by restricting it to children under the age of 16, in order to save £2 billion a year, according to The Sunday Times.
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The coalition government is preparing another round of cuts to child benefit by restricting it to children under the age of 16, in order to save £2 billion a year, according to The Sunday Times.
The government has already announced plans to restrict child benefit to those earning under £43,875 a year.
Further tightening of the benefit would reduce the £12 billion annual child benefit bill to under £9 billion.
According to weekend reports the restriction of child benefit is not the only area at which the government is looking to target. The Sunday Times reported it would look at axing almost the entire £8 billion social housing budget over the next four years.
Other areas for the chop include the £1.3 billion widening of the A14, a £6 billion reduction to Scotland’s annual block grant and a tightening of the defence budget by 7% to 8% on top of the £38 billion overspend. However this marks a step down from earlier plans to trim 10% off defence spending.
Preparing for the cuts
Read Citywire's guides to Wednesday's Spending Review:
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Countdown to the Spending Review: taking a sledgehammer to housing
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4 comments so far. Why not have your say?
Anonymous 1 needed this 'off the record'
Oct 18, 2010 at 09:33
Stopping at age 16 is common sence. If children go on to college, which is most likely as I don't suppose any 16 year old has a chance of getting a job, then the majority will receive the European Education Maintenace Grant which I believe is £30 per week until they are 18.
If the child receives the EMG why should the parents still receive child benefit?
report thisNimrod
Oct 18, 2010 at 12:32
Seems like a good idea. While they are addressing the problem, how about restricting benefit to a maximum of 2 children per parent thus avoiding the possiblity of multiple spawning in our disfunctional society.
report thisRazzgox
Oct 18, 2010 at 18:06
I certainly agree that the benefit should be restricted to a maximum of two. However why not scrap the benefit altogether. If people want families then they must be able to fund them. The country is already overpopulated, so let's not encourage any unnecessary births. Then the money saved from the benefit could go towards paying less tax. Less tax might mean more affordable children.
report thisPeter Jason Taylor
Oct 19, 2010 at 21:14
This scare story about ending Child Benefit at 16 has been denied now.
I am happy for intelligent, hard-working, high-earning couples in stable marriages to have as many children as they wish to and are able to support. They pay more tax than lower earners, and child benefit only gives them a little of their own money back, so they can keep it and the state will still gain from the deal.
As for the others, for example promiscuous fathers who scatter their wild oats far and wide and can't support all their progeny: or lone mothers lumbered with four or five kids, all with different fathers, the state can't carry on supporting them in fags and booze. Unfortunately it's not the children's fault, so a civilised society can't leave them to starve barefoot on the streets. Targeted subsistence management should be the answer, but it's elusive. Perhaps voluntary charities should be given more support to meet this problem, rather than do it through an expensive and bureaucratic DSS.
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