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Child benefit cuts 'looked at for fairness' - Hunt | |
(40 minutes later) | |
Culture Secretary Jeremy Hunt has said the government is looking at ways to make controversial plans to cut child benefit "fairer". | Culture Secretary Jeremy Hunt has said the government is looking at ways to make controversial plans to cut child benefit "fairer". |
He spoke as David Cameron also hinted moves to scrap the benefit for families with one parent earning more than about £44,000 a year could be amended. | |
The PM acknowledged there was an issue with the threshold - amid criticism it unfairly hits single earner families. | 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." |
In an interview with BBC Radio Surrey's Breakfast programme, Culture Secretary Mr Hunt said: "We are looking at ways to make it fairer. | 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. | "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." | "So we just want to look at the fairness issue there and see if there's anything we can do to improve it." |
'Huge anxiety' | |
And Education Secretary Michael Gove told the BBC: "The policy was right, but you need to make sure that when you implement it, that you deal with any rough edges." | |
Chancellor George Osborne will deliver his third Budget - where tax and spending changes are traditionally announced - in March. | 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. |
Shadow Treasury minister Chris Leslie said his party had "repeatedly warned that the government's current plans to cut child benefit are unfair and highly bureaucratic". | |
"These ill-thought-through plans are due to hit families in less than 12 months' time, so David Cameron and George Osborne urgently need to come up with some new proposals," he said. | |
But 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. |