Child benefit reform - it may sound fair at first, but we don't think it is.
From MindfulMoney :: Mindful Money
January 4, 2013 - 7:00pm
Every tax and benefit change is accompanied by a row. But the child benefit tax change is proving to be a spectacular one and Mindful Money thinks it will only get worse in the next few months. The move to reduce or indeed stop child benefit for the highest earners is demonstrating that even reducing what might be called ‘middle class’ benefits is proving very controversial. If you or your partner is earning more than £50,000 you will be affected with a tapered reduction in your child benefit entitlement with those earning more than £60,000 losing it all. And if you are in the affected group, the more children you have, the more money you are likely to lose. The Institute for Fiscal Studies argues that in the worst case involving some 40,000 families, they will be paying 65p for every extra pound they earn. That figure could prove a very sensitive one fo...Continue reading this article »