Thank you for contacting me about Child Benefit.
As you will be aware, in 2010, steps were taken to reduce spending on benefits. Consequently, Ministers felt it was very difficult to justify continuing the provision of Child Benefit to the wealthiest 15 per cent of families in society. The scale of the deficit meant that tough choices needed to be made, and it is an important principle that those with the highest incomes should be expected to be the most financially independent from the Government.
It is for this reason that the Government announced that households with a taxpayer earning over £60,000 would no longer receive Child Benefit. To prevent a cliff-edge, this withdrawal was gradual for those households where someone earns between £50,000 and £60,000. However, it should be stressed that even after these changes to the Child Benefit system, 90 per cent of families still receive the benefit, with 85 per cent getting the full amount.
Together with other welfare reforms, changes to Child Benefit will mean that the welfare system is there for people who need it. I understand it is the Government’s belief that this system is one where work pays, and one that the country can afford. This means people are able to keep more of what they earn, while continuing to reduce the deficit, with future generations not being burdened with more debt that they could pay.
There are no plans to restrict Child Benefit to a set number of children. Child Benefit will continue to be paid for all children in eligible families.
Thank you again for taking the time to contact me