Government scraps planned reform to child benefit system

The government has decided not to implement a planned reform to child benefit that would have based claims on household income instead of individual income. This change was intended to allow more parents to qualify for the benefit. Currently, child benefit is reduced when one parent earns above a certain threshold. The previous proposal aimed to adjust this system, but the government cited a projected cost of £1.4 billion by 2029-30 as a reason for scrapping it. The Budget document also announced that starting in 2025, employed individuals will be able to pay their High Income Child Benefit Charge through their tax code, simplifying the process. However, the overall system will remain unchanged, continuing to disadvantage single earners.