Child benefit cut could leave families worse off
Child benefit cut could leave families worse off
- Tuesday, 5 October 2010 Chancellor George Osborne announced yesterday (October 4th) that child benefits will be scrapped for those in the high tax bracket from 2013.
The announcement was made at the Conservative Party Conference and it has raised fears that families will be thousands of pounds worse off each year, which could contribute to
debt problems.
Families with one breadwinner can earn up to £44,000 a year and still retain child benefit but families with two breadwinners can earn up to £88,000 a year before the benefit is taken away.
This announcement has been met with opposition from stay-at-home mums who feel they will be hit hard by these cuts.
For example, a family with one child will lose £1,055 a year while a family with three youngsters will miss out on almost £2,500 annually.
Without this money, families could feel the pinch when it comes to paying bills and may decline into
debt problems.
Mr Osborne also announced a cap on the amount of benefits workless families will receive.
Workless families will lose around £93 a week when the £500 a week cap is imposed in 2013, which could lead these families into
debt problems.

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