The value of Child Benefit has been frozen until 2014, cutting family incomes in tough times. The Government has also announced plans to stop paying Child Benefit to higher rate tax payers, ending almost 35 years of universal support for children. While the Government have been arguing that it is fair that these wealthy, higher rate tax paying families should bear the greatest burden, there is nothing fair at all about these changes to Child Benefit.
Raising a happy, healthy child costs parents on average £210,000 by the age of 21, but benefits all of society. The tax and benefit system should recognise the extra costs that all families with children bear. Simply cutting child benefit means that wealthy households without children do not carry their fair share of the burden; many higher rate tax payers do not have children in their households, so are not affected by the plans. All households with the means – those who have the broadest shoulders – should be helping to share the burden in these tough financial times.
CPAG’s new report shows the hardship the freeze on child benefit is causing, and what impact the proposed claw back will have on families.

