you're getting confused between the non-payment of child benefit to the highest earners

and the cap on benefits of ?500 a week

Around 50,000 families are expected to be hit by a cap on benefit payments announced by the chancellor today. He said that, unless families have disabilities, they will not be able to claim more in benefits that the amount an average working family earns ? that's currently around ?26,000.

The savings from this scheme are relatively modest ? the Treasury expects to save "several hundred million pounds a year" when the cap comes into force ? but Osborne insisted that he was strking a blow for fairness. Those affected will be large families living in London or other expensive cities and, in most cases, the benefit that will be lost will be housing benefit. It is estimated the families affected will lose, on average, ?93 a week.

Posted By: Ralf Scrampton on October 4th 2010 at 17:25:53


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