Nursery World - The Big Debate: For or against plans to change child benefit?

Is the Chancellor’s proposal to move to using household income as a measure for Child Benefit a good idea? We asked two experts in the sector to share their views

Ruth Talbot

Founder, Single Parents Rights Campaign Group

‘The Spring Budget announcement that Child Benefit eligibility calculations will move from an individual to household threshold shows the Government are finally taking a tentative step towards addressing single-parent discrimination.

‘For almost 40 years, all children were entitled to child benefit regardless of their parents’ income. This ended in 2013 with the introduction of the High Income Benefit Charge paid by those earning over £50,000 per annum. This earnings limit has – since its inception – been based on individual earnings, resulting in a situation where couples can earn up to £99,000 before being liable for the charge, while a single parent loses their full Child Benefit entitlement once they earn £60,000. This results in a single parent with two children earning over £50,300 facing a marginal tax rate of 64 per cent, one of the highest tax rates in the country. This isn’t just bad for families but for the economy as it reduces productivity levels.

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