This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/uk-politics-16539428
The article has changed 14 times. There is an RSS feed of changes available.
Version 2 | Version 3 |
---|---|
Cameron hint over child benefit cuts for better-off | Cameron hint over child benefit cuts for better-off |
(about 3 hours later) | |
David Cameron has hinted the government could alter controversial plans to scrap child benefit for some families. | |
From April 2013, households where one parent earns more than about £44,000 a year are set to lose the benefit, but critics say the plans are unfair. | |
In a magazine interview, Mr Cameron acknowledged the changes could create a "cliff-edge" effect and the Treasury was examining their implementation. | In a magazine interview, Mr Cameron acknowledged the changes could create a "cliff-edge" effect and the Treasury was examining their implementation. |
But Treasury sources said there had been no change in policy. | |
Critics say the proposals would mean that some parents will lose thousands of pounds if their income rises above the 40% tax threshold - currently about £44,000, but due to fall to about £42,000 in 2013. | |
'Unfairness' | 'Unfairness' |
A couple with three children could lose around £2,500 if one parent earned just a few pounds over the threshold - even if the other was unemployed. But a couple who both earn just under £44,000 a year each, and enjoy a total household income of more than £80,000, would keep all their benefit. | |
In an interview with The House Magazine, Mr Cameron suggested he did have some concerns over how the proposed changes were structured. | In an interview with The House Magazine, Mr Cameron suggested he did have some concerns over how the proposed changes were structured. |
"Some people say that's the unfairness of it, that you lose the child benefit if you have a higher-rate taxpayer in the family (but) two people below the level keep the benefit," he said. | "Some people say that's the unfairness of it, that you lose the child benefit if you have a higher-rate taxpayer in the family (but) two people below the level keep the benefit," he said. |
"So, there's a threshold, a cliff-edge issue. We always said we would look at the steepness of the curve, we always said we would look at the way it's implemented and that remains the case. | |
"But again, I don't want to impinge on the chancellor's Budget." | |
George Osborne will deliver his third Budget - where tax and spending changes are traditionally announced - in March. | George Osborne will deliver his third Budget - where tax and spending changes are traditionally announced - in March. |
Mr Osborne has defended the child benefit cut - which could save up to £1bn a year - as tough but necessary, saying those on higher incomes must contribute their share to helping cut the budget deficit. | Mr Osborne has defended the child benefit cut - which could save up to £1bn a year - as tough but necessary, saying those on higher incomes must contribute their share to helping cut the budget deficit. |
Labour have criticised the proposals, saying they have caused "huge anxiety" and that all families need support in tough times. | Labour have criticised the proposals, saying they have caused "huge anxiety" and that all families need support in tough times. |
Employment Minister Chris Grayling told the BBC's Newsnight he would be "surprised if we saw a major U-turn on child benefit". | |
"We always with every policy try to implement it in as sensible a way as possible, but I have heard nothing to suggest that we're about to change direction massively on child benefit," he said. | |
"The prime minister has said he will be careful and thoughtful how we do it and try and make changes as effectively and efficiently and fairly as possible." |