David Cameron admits planned child benefit cuts are “unfair”
Plans to scrap child benefits for high earning parents under threat as PM questions effect on single earning families
Prime Minister David Cameron has suggested that plans to take child benefits away from higher earning parents are unfair and need review.
The PM admits that plans to stop those earning above the 40% tax threshold (around £44,000 a year), collecting child benefits “unfairly hits single earner families”, reports the BBC.
The so-called ‘cliff-edge issue’ would mean a single earning parent with a salary just a few pounds over the threshold could lose thousands in yearly benefits. By contrast, two parents each earning just under the threshold would have a higher combined annual wage but could still claim benefits.
Culture Secretary Jeremy Hunt revealed that the government is in talks to make the plans fairer, before Chancellor George Osborne delivers his third budget in March.
However, George is reportedly standing by the proposals, which he described as “tough but necessary”. Employment Minister Chris Grayling has also spoken out about the unlikely chances of a major u-turn by the Government on the issue.
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