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Cameron faces grilling over child benefit cuts

2010-10-05 54 Dailymotion

<p><br /> David Cameron will be forced to defend cuts to child benefit later amid Labour claims the key Government welfare reform policy was "unravelling" and expert warnings it could appear unfair.<br /> </p><p><br /> Children's minister Tim Loughton said the move to axe the payments to 1.2 million families might need revising, just hours after it was unveiled by Chancellor George Osborne.<br /> </p><p><br /> His comments came after criticism from unions and poverty campaigners and a warning from a respected economic thinktank that the cut could "seriously distort" work incentives.<br /> </p><p><br /> Mr Osborne risked a backlash from middle class voters by announcing child benefit would be stripped from households with a parent who earns over around £44,000 from 2013.<br /> </p><p><br /> He told the Conservative Party conference that the measure, intended to save around £1 billion in child benefit, was a "tough but fair" way to reduce Government spending.<br /> </p><p><br /> When the country was struggling to pay down a structural deficit of £109 billion, wealthy families should not receive welfare payouts funded in part by the taxes of poorer people, he said.<br /> </p><p><br /> Officials said the cut-off point had to be aligned with the higher-rate income tax threshold to ensure simplicity and avoid complex means testing.<br /> </p><p><br /> But Mr Loughton indicated that it could be revised.<br /> </p><p><br /> "If there are ways we can look at compensating measures for those genuinely in need that will be looked at in future budgets," he told Channel 4 News. "If the thresholds need to be adjusted there's plenty of time to look at that."<br /> </p><p><br /> Seizing on his comments, shadow work and pensions secretary Yvette Cooper said: "The Government's unfair attack on child benefit is now unravelling.<br /> </p><p><br /> "The Chancellor only announced means testing this morning, and already the Children's Minister has admitted that the thresholds need to be looked at again.<br /> </p><p><br /> "George Osborne and David Cameron obviously don't understand what it means for families on middle incomes to lose thousands of pounds a year."<br /> </p><p><br /> The Prime Minister will be grilled on the issue in a series of media interviews as he prepares for his own set-piece address to the Birmingham gathering on Wednesday.<br /> </p>

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