Spring Budget 2024
The Budget is a step in the right direction for families
After 14 years of campaigning, we were pleased to hear the Chancellor state publicly that the Child Benefit tax charge was unfair to families particularly where one parent stays at home to care.
Jeremy Hunt stated that, ‘we will end the unfairness for single-earner families by moving towards a household system by 2026.’
This is a big change and a welcome one. We have spent over a decade working with organisations such as CARE and Tax & the Family highlighting the injustices the tax system inflicts on families particularly single-earner families, Up until now there has been no formal acknowledgement either that the charge was unfair or that the system of independent taxation can be changed. Lately, there has been growing pressure from the media and campaigning groups highlighting the unfairness but ministerial and MP responses were always ’nothing can be done to change this because we have a principle of independent taxation’.
The fact that the principle of household taxation was publicly acknowledged means there is a public recognition that the principle can be changed to make life fairer for families.
Our job now is to make sure that the consultation on ‘household income’ does indeed take place and is implemented. We have already been in dialogue with Miriam Cates MP who will ask an Oral Parliamentary question on ‘household income’ so that it is in the public record and can be followed up with a meeting request.
We need to keep up the pressure on the Chancellor, this government and the next (whichever party gets into power) and keep pressure on our local MP or local candidate to make sure this commitment is not forgotten because the unfairness still remains. The tax charge needs to be abolished and this is a first step.
We are also pleased that the salary threshold for Child Benefit has been raised to £60k and that families will at least retain some child benefit until £80k. This will greatly reduce the effective tax rates that families pay.
There is still much work to do. Please do join our campaign team to help keep up the pressure and make a real difference to family life.
Anne Fennell
Chair, Mothers At Home Matter
“Our job now is to make sure that the consultation on ‘household income’ does indeed take place and is implemented.”