Child Benefit Cuts: A Blow to Middle-Class Families
A leaked government memo has revealed that Deputy Prime Minister Angela Rayner is seeking to cut child benefit payments for middle-class parents who earn over £50,000. The proposal, which is part of a cost-cutting measure, has sparked concerns that nearly half a million families could lose their child benefit support.
According to the memo, Rayner wants to "claw back" money from families in which one adult earns more than £50,000 a year. Currently, parents can claim £26.05 a week for a first child and £17.25 for any additional child. For a family with two young children, this amounts to £2,252 per year. The Independent understands that the proposed cuts could have a significant impact on middle-class families who are already struggling with childcare costs.
The issue is not just about the financial implications, but also about the impact on family life. As one mother told The Independent, "I do not have the luxury of a two-parent family – my partner died while we were in the middle of IVF and I went on to have his two children using his banked sperm. I am not playing the victim card, but it is tough to survive." The mother, who is a single parent, said that she is already struggling to make ends meet and that cutting child benefit would make it even harder for her to provide for her children.
The proposed cuts have been condemned by Conservative chancellor Jeremy Hunt, who said that abandoning the policy of extending access to child benefit would confirm that the Labour government is "a traditional anti-aspiration old Labour government." The policy, which was implemented by Hunt in his March 2024 Budget, allowed families with a top earner of up to £80,000 to keep some or all of their child benefit. Under the old rules, the full benefit was stopped at £60,000.
Rayner’s demands would reverse this policy, which has saved families an average of £1,300 a year. The move has sparked concerns that the government is penalizing middle-class families who are already struggling to make ends meet. As The Independent noted in its original article, "some of
