Child Benefit to be withdrawn from High Earning Families in UK
By Jayita, Gaea News NetworkMonday, October 4, 2010
LONDON (GaeaTimes.com) — British government has taken a big decision that would boost its effort of cost cutting. It would withdraw child benefit from those who pay high tax. The measure will be implemented by 2013 and save one billion pounds ($1.58 billion) a year, finance minister George Osborne said Monday.
While giving an interview to BBC, the minister stated,
We are going to withdraw child benefit from higher rate taxpayers. It’s a big decision for us, but we think it’s absolutely necessary and fair given the financial situation we face.
It will be one of the biggest deficit-cutting measures that will take effect by 2013 and would be applicable to higher rate tax payers, who pay tax at a rate of 40 or 50 percent.
However, the families who earn more than 44,000 pounds a year will be deprived of child benefit soon after the measure takes effect, Osborne mentioned before leaving for the Conservatives’ annual conference in Birmingham.
