Prime Minister must scrap child tax plan

February 11, 2001

Responding to comments by the Prime Minister at a car plant yesterday that he would reconsider proposals for higher rate taxpayers receiving child benefit, the Chief Executive of Child Poverty Action Group, Alison Garnham, said:

“The Prime Minister is right to look again at this proposal, which was rushed out by the Chancellor with the maths all wrong and no idea of how it would work in practice. The cliff edge, especially for single earner middle income families, is just one of many problems with an unfair and unworkable proposal.

“The Government recently confirmed in parliament that no parents will have payments of child benefit taken away, instead an equivalent amount will be taken from the main earner by HMRC. So what we really have is a lump sum child tax that will break the budgets of many families. When the Prime Minister reconsiders, he should simply scrap the whole appalling idea."

 

Notes for editors

  • In answer to a parliamentary question on 25 January 2011, the Treasury Minister, David Gauke, announced: “Where a person is currently entitled to receive child benefit they will continue to be entitled to receive payments regardless of whether they or their partner is a higher rate taxpayer.” The full answer can be found here:
  •  For up-to-date background facts and stats on UK poverty, visit: www.cpag.org.uk/povertyfacts/
  • CPAG is the leading charity campaigning for the abolition of child poverty in the UK and for a better deal for low-income families and children.
  • CPAG is one of over 150 member organisations of the Campaign to End Child Poverty, campaigning for public and political commitment to ensure the goals of halving child poverty by 2010 and ending child poverty by 2020 are met.

For further information please contact:
Tim Nichols
CPAG Press Officer
Tel. 020 7812 5216 or 07816 909302 
tnichols@cpag.org.uk