UK Government May Water Down Earnings Cap Plan For Child Benefit

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The FINANCIAL — U.K. government plans to introduce an earnings cap on families which receive the currently universal child benefit may be watered down.

 

U.K. Deputy Prime Minister Nick Clegg said earlier Monday on BBC television news that the government was discussing ways of making benefits and taxes fairer, which could include changing the current earnings limit proposed for receiving child benefit.

According to London Stock Exchange, the government announced plans in 2010 to cut the benefit to families where one or more parents earn over GBP42,475.

Clegg said that while "nothing has been decided yet" it is true that when certain limits are put in place "you do create some anomalies".

The anomalies include a situation where a family in which both parents earn GBP42,000 each–or a total of GBP84,000–would still keep the child benefit, while a family where only one parent works and earns GBP43,000 would lose the weekly payment.

Families in the U.K. currently receive GBP20.30 per week for the first child and an additional GBP13.40 for each additional child.

U.K. Chancellor of the Exchequer George Osborne will announce his next budget Wednesday, March 21.

 

 

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