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news
politics
david-cameron
8045110
-----
# Child benefit row: David Cameron offers tax-break olive branch
## David Cameron offered married couples the prospect of tax breaks yesterday
in an attempt to contain a growing furore over the scrapping of child benefit
for thousands of stay-at-home mothers.
![David Cameron offered married couples the prospect of tax breaks yesterday
in an attempt to contain a growing furore over the scrapping of child benefit
for thousands of stay-at-home mothers. ][1]
In a series of broadcast interviews David Cameron stated that tax breaks were
being considered Photo: GETTY
Robert Winnett and Andrew Porter 7:00AM BST 06 Oct 2010
The Prime Minister said in broadcast interviews that the tax breaks were being
considered as he attempted to fend off criticism of the decision to deny child
benefit to higher-rate taxpayers. Details of the scheme were not disclosed,
adding to concerns that tax and benefit policy was being "made on the hoof".
Earlier this week, George Osborne announced that families with a higher rate
taxpayer would not be able to claim child benefit from 2013. The move was
criticised for being particularly unfair on mothers who stay at home to care
for their children.
Yesterday, Mr Cameron insisted that the move was "fair" in the context of the
struggle to repay record public debts. However, he said that the Government
would "obviously" listen to complaints that it should look at families' total
income, rather than simply remove child benefit from households with a single
higher-rate taxpayer.
That would mean introducing a more sophisticated means-testing system which Mr
Cameron said would be "incredibly bureaucratic and expensive and, frankly,
quite intrusive".
"Obviously it's coming in 2013 and we have also got to look at other things we
have promised to do," he said. "If you look, for instance, at the issue of the
stay-at-home mother, we do talk in the Coalition Government about having some
sort of transferable tax allowance to help couples in that way.
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"So there are things that we will try and do to make sure that all of what we
do, if you look across the piece, to deal with the deficit is fair."
The Prime Minister added that he regretted having to remove child benefit from
higher rate taxpayers. "It is difficult. I wish I wasn't having to do this,"
he said. "But we have to deal with the problems in front of us and we have to
do so in a way that is fair and protects the poorest."
In the run-up to the election, the Conservatives proposed that basic-rate
taxpayers would be able to "transfer" up to £750 of their tax-free allowance
to their husband or wife. This could cut a couple's annual tax bill by up to
£150. George Osborne, the Chancellor, indicated that he wished to introduce
the measure from 2011. However, it would be of no benefit to the victims of
the child benefit reduction who are higher-rate taxpayers.
Ministers have also not repeated the pledge to introduce the tax break since
the Coalition was formed.
Yesterday, Downing Street aides indicated that the scope of the tax break may
be increased to include some higher rate taxpayers. However, it would not
fully compensate single-income families who will lose more than £1,700 in
child benefit a year if they have two children.
Iain Duncan Smith, the Work and Pensions Secretary, said last night that Mr
Osborne's child benefit announcement had been brought forward because of media
pressure. He said the Chancellor wanted to address the issue because
journalists were "dwelling on this the whole time".
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row-David-Cameron-offers-tax-break-olive-branch.html
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