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Child benefit cuts: Millions set to receive letters | Child benefit cuts: Millions set to receive letters |
(30 minutes later) | |
Millions of parents will receive letters from the Inland Revenue this week about losing child benefit. | Millions of parents will receive letters from the Inland Revenue this week about losing child benefit. |
Households where at least one person earns more than £50,000 will have the benefit effectively reduced or stopped. | Households where at least one person earns more than £50,000 will have the benefit effectively reduced or stopped. |
Officials say it means as many as 500,000 parents may have to complete self-assessment tax forms. A flood of calls for advice is expected. | Officials say it means as many as 500,000 parents may have to complete self-assessment tax forms. A flood of calls for advice is expected. |
Ministers say the changes, which take effect in January, are needed to ensure the better-off help deficit reduction. | Ministers say the changes, which take effect in January, are needed to ensure the better-off help deficit reduction. |
From Monday letters will be sent to people who earn more than £50,000 who live at an address where child benefit is received to explain how their family is likely to be affected. | From Monday letters will be sent to people who earn more than £50,000 who live at an address where child benefit is received to explain how their family is likely to be affected. |
Child benefit currently stands at £20.30 a week for the first child and £13.40 for each child after that. | Child benefit currently stands at £20.30 a week for the first child and £13.40 for each child after that. |
Under the new approach, families where one parent earns between £50,000 and £60,000 will have their benefit reduced on a sliding scale. | Under the new approach, families where one parent earns between £50,000 and £60,000 will have their benefit reduced on a sliding scale. |
The change will cost families with three children and at least one parent earning more than £60,000 about £2,450 a year. | The change will cost families with three children and at least one parent earning more than £60,000 about £2,450 a year. |
And it will produce anomalies, such as in the case of two-earner households where both parents earn £49,000. | And it will produce anomalies, such as in the case of two-earner households where both parents earn £49,000. |
They will keep all their benefit, while others who have one parent on £60,000 and the other staying at home will lose all of theirs. | They will keep all their benefit, while others who have one parent on £60,000 and the other staying at home will lose all of theirs. |
Hundreds of thousands of parents will have to complete a self-assessment tax form. | Hundreds of thousands of parents will have to complete a self-assessment tax form. |
Accountants say they expect calls from people confused by the change, or looking to avoid losing benefit by legal means, for example, making additional pension contributions. | Accountants say they expect calls from people confused by the change, or looking to avoid losing benefit by legal means, for example, making additional pension contributions. |
Meanwhile, senior Conservatives have released poll results that suggest 82% of the public support plans to cut child benefit for high-earning families, while 13% oppose it. | Meanwhile, senior Conservatives have released poll results that suggest 82% of the public support plans to cut child benefit for high-earning families, while 13% oppose it. |
Populus surveyed 2,066 British adults between 24 and 26 October. | Populus surveyed 2,066 British adults between 24 and 26 October. |
A Treasury spokesman, responding to the poll, said: "In a period when the government is having to reduce welfare spending, it is very difficult to justify continuing to pay for the child benefit of the wealthiest 15% of families in society. | A Treasury spokesman, responding to the poll, said: "In a period when the government is having to reduce welfare spending, it is very difficult to justify continuing to pay for the child benefit of the wealthiest 15% of families in society. |
"The unprecedented scale of the deficit has meant that the government has had to make tough choices to reduce public spending; but we have always been clear that those with the broadest shoulders should carry the greatest burden." | "The unprecedented scale of the deficit has meant that the government has had to make tough choices to reduce public spending; but we have always been clear that those with the broadest shoulders should carry the greatest burden." |
The spokesman added that 85% of all families with children would be unaffected by the changes and would continue to receive child benefit in full. | The spokesman added that 85% of all families with children would be unaffected by the changes and would continue to receive child benefit in full. |
Do you expect to lose child benefit? Are you confused by this change? Send us your comments using the form below. |