Child benefit expectations too high for Treasury
Channel 4 News political Editor Gary Gibbon asks if the government can afford to change its child benefit plans?
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As George Osborne announces changes to child benefit, Channel 4 News explains what it means for you.
Channel 4 News political Editor Gary Gibbon asks if the government can afford to change its child benefit plans?
A lot of pre-Budget kite-flying going on. Always a danger that you raise expectations with exercises like that and then find you can’t deliver on them. On child benefit, the Treasury seems to be looking at a number of ways of ameliorating the child benefit removal for 40 per cent tax payers. All of them look pretty expensive. The plan is to have something ready to announce in the Budget on 21 March.
Deputy Prime Minister Nick Clegg says the government is considering how to avoid the “unintended consequences” of planned changes which would see higher rate taxpayers stripped of child benefits.
After David Cameron’s warning of a child benefit “cliff edge”, Chancellor George Osborne confirms he will cut the benefit for higher-rate taxpayers but may change details, as Michael Crick reports.
Higher rate taxpayers could face non-compliance fines if they do not declare their partners claim child benefits, the Treasury has confirmed.
How will child benefit changes affect you? If you live with a higher rate taxpayer and get child benefit what happens if you don’t tell the government? We have the answers.
The Treasury answers your questions on plans to scrap child benefit for higher rate taxpayers – telling Channel 4 News the more complicated points will be worked out during the legislation process.
A senior Treasury Minister has been challenged in the Commons over reports that the government’s plans to scrap child benefit for higher taxpayers could be “unenforceable”.
There was a lot to check out in the Spending Review – and we’ll keep on it for the rest of the week. But here’s a taster of the claims that caught FactCheck’s eye.
We were told by the Tories when they announced child benefit changes at their own conference that removing higher rate tax payers would bring in around £1b. But – hey presto – George Osborne’s just said it will bring in £2.5bn, blogs Gary Gibbon.
When reporters were briefed about changes to child benefit, the Treasury accidentally gave us the wrong figures for how many would lose out and by how much. The figures they gave us included data on the impact of bringing down the qualifying age for child benefit to 16. Oops.
Faisal Islam blogs on how the government’s spending cuts will hit child benefits, tax credits and social housing hard.
The widely reported £44k threshold is not reliable as a guide to who will be affected. That’s because in June’s budget it was announced that the higher rate tax threshold will actually fall. In short, by time child benefit is cut for higher rate earners in 2013, it won’t be just people earning over £43,876 who will be caught out by the change, but also many more who thought they’d be safe.
A Treasury source insisted to me last night, choosing his words very carefully, that the decision on child benefit was taken “in the last couple of weeks.” It only adds to the brittleness amongst some who consider themselves in the top half of the Cabinet but who only got to hear about the decision at…