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Child benefit cuts 'looked at for fairness' - Hunt | Child benefit cuts 'looked at for fairness' - Hunt |
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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. | 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. |
Child benefit is available for every child in the UK below the age of 16 and is one of the few remaining non-means tested benefits. | |
It is worth £20.30 every week for a first-born child and £13.40 for each subsequent child. It is paid to the parent directly responsible for care of the youngster - in practice, it is most often claimed by the mother. | |
'Unfairness' | 'Unfairness' |
In October 2010, Chancellor George Osborne announced plans to scrap child benefit for any household with a parent above the 40% tax threshold - currently about £44,000, but due to fall to about £42,000 in 2013. | |
As a result, 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 child benefit. | |
In an interview with Parliament's House Magazine, Mr Cameron 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. | |
"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." |
'Fairness issue' | 'Fairness issue' |
BBC political correspondent Carole Walker said it could mean some sort of tapering of benefits, but any kind of rowing back on the cuts would cost the government money. | |
In an interview with BBC Radio Surrey's Breakfast programme, Culture Secretary Mr Hunt said: "We are looking at ways to make it fairer." | |
Mentioning the issue with the threshold, he added: "We just want to look at the fairness issue there and see if there's anything we can do to improve it." | |
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." | 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." |
The chancellor 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". | 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. | "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. |
Child benefit is taken up by 96-97% of the eligible population. | |
It is not yet clear how the government intends to implement the planned cuts, but it could involve HM Revenue & Customs, which administers the child benefit system, cross-referencing all claimants against their tax records. |