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Cameron hint over child benefit cuts for better-off Child benefit cuts 're-examined for fairness' - Hunt
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David Cameron has hinted the government could alter controversial plans to scrap child benefit for some families. Culture Secretary Jeremy Hunt has said the government is looking at ways to make controversial plans to cut child benefit "fairer".
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. He spoke as David Cameron also hinted moves to scrap the benefit for families where one parent earns more than about £44,000 a year could be amended.
In a magazine interview, Mr Cameron acknowledged the changes could create a "cliff-edge" effect and the Treasury was examining their implementation. The PM acknowledged there was an issue with the threshold - amid criticism it unfairly hits single earner families.
But Treasury sources said there had been no change in policy.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.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.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."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.""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. In an interview with BBC Radio Surrey's Breakfast programme, Culture Secretary Mr Hunt said: "We are looking at ways to make it fairer.
"Particularly, there's this sort of 'cliff-edge effect', that if someone gets over the top-rate limit they lose child benefit, but there could be two people who are just under the limit in a household and have a combined income of much, much more than that who continue to claim it.
"So we just want to look at the fairness issue there and see if there's anything we can do to improve it."
'Careful and thoughtful'
Chancellor 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".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."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.""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."