Child Benefit

Julian Sturdy Excerpts

Tuesday 21st February 2012 Westminster Hall

[Mr Gauke]

I am conscious that I have three minutes left and I have barely begun to deal with the various points raised by my hon. Friend the Member for Christchurch, who secured this debate.

We recognise that most higher rate taxpayers are not super-rich. But, as my right hon. Friend the Chancellor has said,

“a system that taxes working people at high rates only to give it back in child benefit is very difficult to justify at a time like this.”

He went on to say:

“We simply cannot ask those earning just £15,000 or £30,000 to go on paying the child benefit of those earning £50,000 or £100,000.”

The debts of the previous Government have to be addressed. Consequently, we have had to make difficult choices. By removing child benefit from higher rate taxpayers, the Office for Budget Responsibility estimates that we will save £2.5 billion a year. The savings mean we can continue to direct child benefit support to where it is needed most, supporting millions of families, and millions of children from birth until the time when they leave full-time education at the age of 18 or even 19.

[Julian Sturdy (York Outer) (Con)]

Will the Minister give way?

[Mr Gauke]

I will give way, but we are eating into the time of my hon. Friend the Member for Christchurch.

[Julian Sturdy]

I want to touch on the transferable tax allowance, which has already been mentioned. I have written to the Treasury about it, and it is a way of bringing fairness back into the system. Will the Minister respond to that?

[Mr Gauke]

I am grateful, because I want to respond directly on that point. The Government, as stated in the coalition agreement, want to recognise marriage in the tax system. We remain committed to that and we will introduce proposals at an appropriate time, as is consistent with the coalition agreement. We remain committed to what is in the coalition agreement.