Cathy Jamieson MP, Labour’s Shadow Treasury Minister, said in response to the Institute for Fiscal Studies’ comments on the Government’s child benefit changes today:
“Labour has repeatedly warned about the unfairness and problems with David Cameron’s child benefit plans.
“A two-earner family each earning £40,000 – a total of £80,000 – would keep all their child benefit. But a single-earner family on £43,000 would lose it all from next year. And as the IFS has said, hundreds of thousands of families would be better off if they lowered their income and the Treasury is set to lose hundreds of millions of pounds.
“Tough choices on tax, spending and pay do need to be made to get the deficit down. But with their botched child benefit plan, as well as cuts to tax credits and childcare support for parents on low and middle incomes, this out of touch Government has chosen to hit families with children much harder than the banks.
“David Cameron’s ill thought through cuts to child benefit are due to hit families in less than 12 months time, so we need an urgent rethink on these and the Government’s wider plans to hit families with children hardest of all.”