350,000 parents could lose state pension credits says TUC

Hundreds of thousands of women could be at risk of losing their state pension credits if child benefit is cut, according to the Trade Union Congress (TUC).

Just over 350,000 parents, with the majority of them being women, could lose the vital National Insurance credits.

According to their research there are 351,000 families with children under 12. In this group one person is earning over the higher rate tax threshold while the other is either not working or earning below the lower earnings limit of £102 per week.  

The stay at home low earners, whose partners are paying the higher tax rate, are at risk of losing their state pensions credits along with their child benefit.

TUC General Secretary Brendan Barber said: “Child benefit recognises the cost of raising children and the contribution that carers make to society, whatever their income. Cutting it would be deeply unfair.”

“The government claims it can’t afford to pay wealthy families child benefit but because of the way the change will come in, families with an income of £84,000 could keep their child benefit while a single parent on £42,500 could lose out. The fact is that two in five households earning over £42,500 will still receive child benefit.”

Child Poverty Action Group Chief Executive Alison Garnham said: “The child benefit plans now look like another strike on women’s financial security, which brings with it greater risks for children too.”

“The Chancellor needs to scrap the child benefit cut and find a much fairer way of ensuring that all higher rate taxpayers are contributing their fair share to reducing the deficit, not just families with children.”

The government claim that tax breaks for high earners must end.  Shadow chancellor Ed Balls said that: “People are increasingly worried about what’s happening to employment, the economy and the deficit, as well as their own living standards.”

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350,000 parents could lose state pension credits says TUC

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