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TUC: Child benefit cuts will hit nearly a million single income families
Nearly a million single income families earning between £43,875 and £87,750 - the maximum a family with two incomes can earn without paying higher rate tax - will lose their child benefit under plans announced in the Comprehensive Spending Review according to the TUC.
The TUC has used the Family Resources Survey, published by the Office for National Statistics, to calculate that 830,000 families with children have one parent paying higher rate tax - but earning less than £87,750 - and would therefore lose their child benefit.
The government's plans to scrap child benefit for higher rate taxpayers will affect 1.5 million children in single income families, the TUC says.
Of those families losing their child benefit, over 100,000 have at least three children and would therefore lose at least £2,500 a year.
The TUC believes that targeting single income households earning just above the higher rate tax threshold over dual earner households with a bigger total income is unfair. Child benefit cuts also target women and children who may not get their fair share of a male breadwinner's income, the TUC says.
TUC General Secretary Brendan Barber said: 'Ministers have chosen scrapping child benefit for higher rate tax-payers as their token raid on the better off.
'But it's a peculiar and incompetent hit. Rather than targeting the really wealthy, the biggest impact is on those earning around the higher rate tax threshold. They may be better off than average, but I doubt that many think they are super-rich.
'And this is part of a pattern across all income bands of taking money away from women and children, including the 300,000 female public sector workers set to lose their jobs.
'The government says those with the broadest shoulders should bear the most of the burden. But this cut surgically targets a group who may be somewhat better-off but spares the super-rich.'
NOTES TO EDITORS:
Single income families earning between £43,875 and £87,750 affected by child benefit cuts
|
Number of children in family |
Number of families |
Children affected |
|
1 |
334,000 |
334,000 |
|
2 |
388,000 |
776.000 |
|
3 |
84,000 |
252,000 |
|
4 |
19,000 |
76,000 |
|
5 |
5,000 |
25,000 |
|
Total |
830,000 |
1,463,000 |
- The Family Resources Survey is available at http://statistics.dwp.gov.uk/asd/frs/
- All TUC press releases can be found at www.tuc.org.uk
- Register for the TUC's press extranet: a service exclusive to journalists wanting to access pre-embargo releases and reports from the TUC. Visit www.tuc.org.uk/pressextranet
Contacts:
Media enquiries:
Liz Chinchen T: 020 7467 1248 M: 07778 158175 E: media@tuc.org.uk
Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: rholdsworth@tuc.org.uk
Elly Gibson T: 020 7467 1337 M: 07900 910624 E: egibson@tuc.org.uk
