- Conservatives pledge to maintain two-child benefit limit
- Rishi Sunak confirms policy continuation if Tories win election
- Child benefit rates remain, tax thresholds increase, benefit reforms outlined
The prime minister affirmed that the Conservative manifesto would include the pledge to maintain the limit, which was implemented in 2017.
Rishi Sunak has unveiled that, should the Conservatives prevail in the upcoming election, he will maintain the two-child benefit limit.
The policy restricts the benefits that Universal Credit-eligible parents may request for their offspring.
The prime minister wrote in The Sun on Sunday, “Working families do not experience an increase in income with the addition of more children.”
Benefit-receiving families must be required to make equivalent financial decisions as those who are self-sufficient through employment.
Mr. Sunak affirmed that the 2017-introduced pledge to maintain the cap would be included in the Conservative election platform.
The Conservatives have declared this as their second manifesto commitment, following their initial pledge to maintain the triple lock on pensions.
Increasing the limit would reportedly cost an estimated £1.5 billion.
While certain Labour Party members of parliament and charitable organizations have advocated for the elimination of the limit over the years, Sir Keir Starmer has stated unequivocally that the party would not reverse the cap while he is in charge.
Child benefit is monetary assistance provided to guardians or parents with the duty of rearing a child.
The age restriction for the applicant is not specified, and there is no means-testing component.
It is calculated at two distinct rates: £15.90 per week for each child other than your firstborn and £24 per week for your eldest.
You may, however, be subject to a tax liability if your income exceeds a certain threshold.
If you or your partner receive child benefits and have an individual income of £50,000 or more, you are currently required to pay the high-income child benefit tax levy.
The fee is calculated as 1% of the overall child benefit received for each additional £100 earned more than £50,000.
At a salary of £60,000, the penalty is equivalent to the total benefits that would have been received, leaving no benefits.
However, in the spring budget, Jeremy Hunt raised the thresholds, increasing them to £60,000 (at which point you begin to lose out) and £80,000 (at which point you receive nothing), respectively.
You will be assessed 1% of your child benefit for each £200 of income more than £60,000, up to a maximum of £80,000, beginning on 6 April.
“Don’t miss out! Grab your free shares of Webull UK today!”
After twelve months, the prime minister announced earlier this week that individuals who are suitable for work but decline job offers will have their benefits revoked.
Mr. Sunak, in outlining his intentions to reform the welfare system should the Conservatives prevail in the upcoming general election, stated that “unemployment support ought to be a safety net, never an option,” adding that he would “ensure that diligent effort is consistently rewarded.”
Mr. Sunak stated that by introducing a plethora of measures in the next parliament, his administration would be “more ambitious about helping people back to work and more forthright about the risk of over-medicalizing the everyday challenges and worries of life.”
