Proposals for Child Benefit are designed to create a fairer and more supportive system for working families, simplify the tax system, and ensure fiscal responsibility.

Supporting Working Families, Not Penalizing Aspiration

A significant change to the Child Benefit claw back is proposed. The current system, which penalizes families by clawing back benefits for incomes over £50,000, would be removed. Instead, a new claw back would be introduced only for incomes in excess of £120,000. This change would provide substantial financial relief and a greater incentive to work extra hours for thousands of families, ensuring that a pay rise feels like a reward, not a penalty.

A Responsible Approach to Family Support

While a strong safety net is essential, government finances must be managed responsibly. Therefore, the two-child cap on Child Benefit should not be removed at this time. This is a pragmatic decision to ensure that financial commitments are sustainable.

A Vision for the Future: Investing in Our Children

Ultimately, the long-term vision is to phase out Child Benefit entirely as the state provides more direct state support for children's education. This would include nursery, school meals, a range of activities and a school uniform subsidy for those less well off. This transformative shift would provide tangible benefits for all children, ensuring every child has the best start in life, and represents a more direct and impactful investment in the next generation.

However the alternative view is the country needs to encourage more births and providing child benefit is one of the ways to encourage that objective.