Child Benefit
This is very good news BUT…….
This Blog has actively promoted removing universal benefits from people who do not need them. Higher rate taxpayers do not need child benefit, fuel allowance and so on. Anybody receiving over £100,000 a year pension should not get the state pension. First because the country cannot afford to dole out largesse when it is not needed and second to provide such funds, those on much lower incomes have to pay more tax to molly coddle the well off. This is totally daft. Moreover it is socially unjust, individually unfair and meets no valid need or economic objective.
BUT…. It is reported that whilst a single parent earning just over £44000 will lose child benefit (also two parents where one does not work), two parents each earning just under the margin with a combined income of £80,000 will get it still. This is totally unfair, hurts the vulnerable and is politically inept. It plays into the hands of pressure groups, trade unions and Ed Milliband. There has to be a cut off related to total family income. This may be £44000, or £50000, or some other figure. There is no ‘means testing’ required. The Inland Revenue know what each parent is earning.
Cuts must happen. But they have to be fair and be seen to be fair on critical examination. This appears to fall short. A banana skin for George Osborne?