The government has decided not to proceed with plans to assess child benefit eligibility based on household income, citing the significant fiscal cost. The current high income child benefit charge will remain in place, with Labour aiming to simplify the system by allowing employed individuals to pay the charge through their tax code and pre-populating tax returns with child benefit data. The administration task of assessing household income rather than sole income was deemed too cumbersome, with experts suggesting that increasing pension contributions could help reduce liability for parents affected by the charge.
Full Article
Loading PerspectiveSplit analysis...
