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Child benefit changes hinted at

Fundamental changes could be carried out to the child benefits system, the Government's new "Poverty Tsar" has admitted.

Former Labour minister Frank Field told The Times newspaper that payments linked to the age of a child was being considered along with introducing tax on the benefit.

The child benefits system costs about £11 billion to run per year. At the moment, it is paid until a child is 19 if they are in full-time education, with parents receiving £20.30 a week for their eldest child and £13.40 a week for each of their other children.

Mr Field was named as chairman of the Review of Poverty and Life Chances panel by Downing Street last week and said one area which would be looked at closely was what happened to the award when a child reaches the age of 13 or 14.

He said: "At that age mothers feel even more engaged with work than they are with children. They feel more secure with their children when they are over 13 and so on. If you have a crisis at work and can't be home, it's not such a disaster as when you have a seven-year-old coming home from school."

Copyright © Press Association 2010

All articles are copyright The Press Association 2010. News articles provided by The Press Association for Family Investments. Whilst every care it taken to ensure accuracy of editorial content, Family Investments takes no responsibility for any errors or omissions. The views expressed in these articles are not necessarily those of Family Investments.

  

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Important Information: The contents of this website must not be interpreted as financial advice. You should not rely on the comments and views expressed within this site. Your own individual circumstances should always be considered. If you have any doubts regarding financial matters you should seek advice from a suitably qualified professional. See our Terms and Conditions for more information. Site last reviewed and updated 02/09/10.