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One million families face £1300 cut in child benefit

MORE than one million better-off families across the UK – around 100,000 in Scotland – are set to lose an average of £1300 in child benefit this year as the Coalition seeks to cut the nation's welfare bill and save £1.5 billion by 2013/14.

In a critical analysis of the UK Government's planned reforms, the Institute for Fiscal Studies (IFS) also points out thousands more households will lose the benefit over the next few years because the threshold for receiving it will remain fixed and not take into account wage inflation. The IFS argues while it made sense to target universal benefits paid to the better-off as part of efforts to tackle the budget deficit, the way it was being done was "problematic" and the child benefit cuts would cause "incoherence" in the welfare system.

Contextual targeting label: 
Families

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