The Conservatives will promise a tax cut for parents on Friday, raising the threshold for when families will have to pay a tax on child benefit.
The current system means that if one parent or the parent’s partner earns more than £60,000 they will start paying the high rent child benefit tax charge and will lose benefit entirely when salary reaches £80,000.
But if the Conservatives win the July 4th election, they have promised to raise the threshold to £120,000 before any tax is paid, and to £160,000 before the benefit is withdrawn, as well as base it on household income rather than a family income. Individual.
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Chancellor Jeremy Hunt stated that the policy would lead to an average tax cut of £1,500 for around 700,000 families and in turn would “increase families’ financial security and give them more money to spend on the things that matter most”.
But the Labor Party called it “another shambolic announcement from Rishi Sunak, adding to his list of desperate and unfunded policies that he knows cannot be implemented”.
This latest government measure follows its decision in April to increase the threshold for when the High Income Child Benefit Tax charge comes into effect from £50,000 to £60,000.
The party said the new £120,000 policy would cost £1.3 billion by 2029 and would be paid for by a “crackdown on tax evasion” – a measure it has pledged to use throughout the campaign which it estimates will raise £6 billion.
The Conservatives said the change would “end the injustice that means single-earner families can start paying tax when a family with two working parents and a much higher total income can keep child benefit in full”.
But it would only come into force in autumn 2025 due to “significant reform” of HMRC procedures that would have to take place first.
Chancellor Jeremy Hunt will reveal his new plan on Friday. Photo: PA
Hunt said: “Raising the next generation is the most important work any of us can do, so it’s right that, as part of our clear plan to cut taxes, we are reducing the burden on working families.”
But a Labor spokesman said: “Rishi Sunak clearly wants to pretend the last 14 years didn’t happen, because almost all of his policies reverse decisions his own party made.
“The choice in this election is another five years of Tory chaos or stability with a changed Labor Party.”
The SNP’s David Linden attacked the plan, saying: “The Conservatives’ time is up – and no amount of desperate, last-minute political announcements will stop the democratic defeat that is on its way.
“The Scottish people can see through the Tories’ empty election promises because they know the only thing Westminster has achieved is austerity cuts, Brexit and a cost of living crisis.
And Liberal Democrat Treasury spokeswoman Sarah Olney also said her rivals’ policies were not “worth the paper they are written on, after years of rising taxes on working families”.
She added: “Tory ministers have had years to help parents with the cost of living but have done absolutely nothing other than raise taxes.
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His party will also focus on fathers with its election announcement, promising to double statutory maternity pay to £350 a month and introduce a “dad’s month” of paid leave for new fathers.
They will also make paid parental rights available from the first day of work and extend them to self-employed parents.
Lib Dem leader Sir Ed Davey said the proposals would “give new parents the choice and flexibility they need, backed by a suitable support package”.
Meanwhile, Labor will talk about its housing strategy – including making the mortgage guarantee scheme permanent and promising to build 1.5 million homes during the next parliament.
This story originally appeared on News.sky.com read the full story
