Single income families to require debt management help?

A number of single income families in the UK could soon find themselves requiring debt help as a result of the government’s Comprehensive Spending Review, it has been suggested.

According to the Trades Union Congress (TUC), child benefits cuts will adversely affect almost one million households.

The organisation used the Family Resources Survey – published by the Office for National Statistics – to discover 830,000 families with children that include one parent paying the higher tax rate but earning less than £87,750 would lose their child benefit as a result of the measures.

It warned the government’s plans to abolish child benefits for higher rate taxpayers will impinge on 1.5 million children in single income residencies.

Moreover, the body suggested of these families losing out on the handouts, more than 100,000 of them have at least three children – resulting in them missing out on at least £2,500 a year.

The TUC claimed singling out these people above dual-earning households that enjoy a greater total income is an unfair approach.

It added the cuts to child benefit could particularly affect women and children who might not be given a fair share of a male breadwinner’s wage.

TUC general secretary Brendan Barber described the move as a “peculiar and incompetent hit”.

He added: “Rather than targeting the really wealthy, the biggest impact is on those earning around the higher rate tax threshold.”

Chief executive of Child Poverty Action Group Alison Garnham recently claimed any cuts to child benefit could hurt youngsters who already suffer hardship in their lives.

By Amy White