Asked by: Natascha Engel (Labour - North East Derbyshire)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will make an assessment of whether changes made to child benefit legislation since May 2010 have resulted in unfair tax burdens falling on people who are living with a partner who has his or her own children in the household.
Answered by Baroness Morgan of Cotes
Child Benefit is paid for the welfare of the child/children in the household. If any partner in the household has income over £50,000 then they are required to register for the Higher Income Child Benefit Charge regardless of whether or not they are the biological parent.
This approach withdraws Child Benefit from those on high incomes, whilst leaving the majority of claimants completely unaffected by the changes. Those families with at least one taxpayer with an income over £60,000 can choose not to receive the Child Benefit, which means that they do not have to pay the tax charge at all.