MPs overrule Lords on child benefit


moneynews_plantMPs in the Commons have decided to overrule amendments made by the House of Lords to the Government's benefit reform plans.

Among their decisions, MPs reinstated plans put forward by ministers to introduce a £26,000 annual benefits cap.

Members of the Commons decided that child benefit should not be exempt from this welfare cap. However, Chris Grayling, the country's employment minister, indicated that the Government is willing to make some concessions regarding the cap.

All this shilly-shallying between the Commons and the Lords is enough to confuse even the most politically minded of us - so what could the new concessions mean for us parents?

According to Mr Grayling, after 2013, people on universal credit and working tax credits will be exempt from the proposed benefit cap.

Meanwhile, before the cap applies, families will be given the chance to find work in a 12-month period of grace.

And if people lose their job, after being in work for a year, and the fault is not theirs, a nine-month period of grace will be provided before the cap applies.

Confused? You're probably not the only ones.

To help try and simplify things amid the chopping and changing of positions, this guide outlining the originally proposed changes to child benefits should help clear a few things up.