The Government’s plan to withdraw child benefit from households with a higher rate taxpayer has gained a lot of publicity: but there is very little comment on the three-year freeze on child benefit payments which is about to enter its second year.
By 2013 it has been estimated that a family with three children will be losing £286 a year because of the freeze.
Oxford & District Child Poverty Action Group has recently conducted a survey about the impact on local families, talking to shoppers in the Cowley Centre. Most said they were already feeling the pinch, with increasing food and fuel prices and the cost of childcare going up (particularly as the tax credit subsidy for childcare has been reduced substantially). Several were also suffering a pay freeze and increased pension payments.
We asked parents what changes they would have to make as a result.
Answers included cutting back on holidays and out-of-school activities, an end to buying books and properly measured shoes, asking other family members for help, taking on more overtime, and parents cutting back on meeting their own needs.
Child benefit replaced the former child tax allowance as well as family allowances, recognising that, at all income levels, you need more money if you have children.
There are plenty of ways of ensuring the better-off pay a fairer share of tax without picking on only families with children.
Government policy at present seems to be unfairly targeting those who are bearing the cost of bringing up the next generation.
SUE TANNER (Oxford & District CPAG) Sunningwell Road Oxford
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