Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Rishi Sunak to Extend Child Benefit to Higher Earners

by June 7, 2024
June 7, 2024
Rishi Sunak to Extend Child Benefit to Higher Earners

In a strategic move to close the polling gap with Labour, the Conservative Party has pledged to extend child benefit to 700,000 higher-earning households by raising the threshold to a combined income of £120,000 per household.

Currently, child benefit, worth over £2,000 annually for two children, is withdrawn when one household member earns over £60,000, with complete withdrawal at £80,000. Critics have pointed out the arbitrary nature of these thresholds, as households with dual earners each making £60,000 still receive full benefits, while a single earner at £80,000 does not receive any.

The proposed overhaul would allow households with a single earner making up to £120,000 to receive full child benefit, with gradual withdrawal commencing only when household earnings exceed £160,000. This reform is projected to cost £1.3 billion, funded through measures against tax avoidance and evasion.

Chancellor Jeremy Hunt announced, “Today we have unveiled a £1,500 tax cut for parents to enhance financial security and provide more spending power for families. Raising the next generation is paramount, and as part of our plan to reduce taxes, we are alleviating the burden on working families.”

In the upcoming manifesto, the Conservatives plan to announce another significant tax cut, with potential reductions in stamp duty and inheritance tax.

Prime Minister Rishi Sunak used a recent debate to claim that Labour would impose a £2,000 tax hike on households, a statement dismissed by Labour leader Sir Keir Starmer as false. Hunt emphasised, “Voters face a clear choice: bold Conservative tax cuts for working families or a £2,094 tax increase under Labour to cover their £38.5 billion spending gap.”

The £60,000 threshold, introduced by the Conservatives in 2013, ended universal child benefit, initially affecting one in eight families. Frozen since its introduction, it now impacts nearly one in three families, or up to 2.5 million households. Hunt had previously raised the threshold from £50,000 to £60,000, citing unfairness to single-earner households and calling for further reforms.

A Labour spokesperson criticised the announcement, saying, “This is another chaotic, unfunded policy from Rishi Sunak, reversing his party’s own decisions. The choice is between continued Conservative chaos or stability with Labour.”

The Conservative Party’s claim about Labour’s £2,000 tax rise has faced scrutiny, with the Office for Statistics Regulation noting the figure covers a four-year period, potentially misleading without full context.

Starmer reiterated, “Our plans are fully costed and funded, with no tax rises for working people. The prime minister’s desperate claims are false, and he knew it.”

Read more:
Rishi Sunak to Extend Child Benefit to Higher Earners

0
FacebookTwitterGoogle +Pinterest
previous post
Ikea to Hire Virtual Staff for £13 an Hour in Roblox Metaverse Store
next post
Scottish Woman Sues Netflix for $170M Over Baby Reindeer Character Depiction

You may also like

Royal Mail ‘considering £430m swoop for Czech rival’

December 13, 2023

What UK Entrepreneurs Can Learn from the Boom...

May 20, 2025

Get Ahead of Current Market Demands by Adopting...

September 4, 2024

Selling a business in the UK – what...

March 3, 2023

Rishi Sunak’s stealth tax to cost middle earners...

November 2, 2022

RMT announces Saturday rail strikes in August and...

August 12, 2023

UK officials fear port chaos unless EU delays...

July 9, 2024

The Role of a Private Investigator in UK...

March 7, 2025

How To Navigate Success With Employee Engagement Benchmarks

April 9, 2024

Delay to new sign language GCSE branded ‘a...

February 6, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Lotus denies plans to close Hethel factory amid US expansion talks

      June 29, 2025
    • Top university degrees lose sway as tech employers prioritise job-ready skills

      June 29, 2025
    • Government urges supermarkets to make healthy food more appealing in bid to tackle obesity crisis

      June 29, 2025
    • Senate Republicans ram Trump’s ‘big, beautiful bill’ through key test vote

      June 29, 2025
    • Chief Justice Roberts sounds alarm on dangerous rhetoric aimed at judges from politicians

      June 29, 2025
    • Britain’s fastest-growing firms revealed for 2025: Dfyne, Nala’s Baby and Hawkstone lead the charge

      June 29, 2025

    Categories

    • Business (8,333)
    • Investing (2,081)
    • Politics (15,853)
    • Stocks (3,177)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved