After the most amazing, fun filled summer I am back in the UK to resume my studies. It is my final year of university, and I am highly anticipating graduation in June '11.
I have been a little bit disconnected from current events over the summer, as going to the beach seemed more important. However, David Cameron and chancellor George Osborne are making sensational headlines here because of the axed child benefit.
Allow me to explain this, according to the BBC, child benefit is allocated to all families, regardless of income, to the tune of about 20 quid a week. For the second child, you get an additional 13 pound a week. Come 2013, any single earner making above £42,225 will loose this benefit.
According to Her Majesty's Revenue and Customs (HMRC), the average income in the UK is £22,800. Therefore, those single earners loosing the child benefit are nearly double as well off as the median Briton. Furthermore, in a country where access to health care for all children and parents from cradle to the grave is virtually free, state education is free and higher education is inexpensive with grants/loans readily available to all who need it, I do not see a single valid reason why the government is obliged to pay out. Essentially, those that oppose the cut in child benefit believe they are entitled to money from the government for reproducing. According to the treasury, the government will save over 1 billion pound annually from these cuts.
Sounds good to me. I am happy to see the Conservatives rolling back and trying to balance the books, and what better and more efficient way then cutting silly benefits to people who don't REALLY need it. It is true that many families will feel the pinch, but if you can't raise a child with an income of 42,000 pound then it might be time to re-evaluate spending.
Any thoughts?
