Child benefit plans could be changed, Clegg hints

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Working mum

Working mumPlans to axe child benefit for higher rate taxpayers have provoked outrage and left many families worried. But the Deputy Prime Minister has hinted that the plans may be changed.

Nick Clegg told BBC Breakfast that the Government will look at the process of "how you administer the removal of child benefit from upper rate earners".

As it stands, the plans could see households with someone earning more than £42,475 denied child benefit.

But a serious issue has been raised - a family with a single earner taking home more than £42,475 would lose child benefit, but a couple each earning slightly less than the top rate could together take home £80,000 and yet keep the benefit.

Mr Clegg admitted this is something of an anomaly.

The Daily Telegraph claims the cut-off point might be raised to £50,000, but Mr Clegg said nothing had been decided yet. He suggested details would be announced in the Budget on March 21.

The child benefit changes are set to come into force in January 2013.

 

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