Thank you for contacting me about the Child Benefit freeze.
Very sadly, and despite the UK’s economy performing extremely well compared to our neighbours we are still as a country running a significant budget deficit. In the current year approximately a further £50bn will be added to the national debt which our children’s generation will be required to pay off (with interest). Some of this directly relates to capital projects which will benefit our productivity but £20bn reflects current expenditure. At present (in a very low interest rate environment) we are spending on interest payments half of what we spend annually on the NHS.
As a country we owe it to future generations to do our outcome to bring Government spending under control. As part of this welfare spending has been the focus of tough choices.
To these end, the Government announced that the rates of certain working-age benefits, will be frozen at their 2015/16 levels for four years up to 2019/20. Let me reassure you the Government has carefully considered the impact of these reforms. They are part of a broader array of measures designed to rebalance the welfare state to more effectively focus support on the vulnerable.
Together with other welfare reforms, changes to Child Benefit will mean that the welfare system is there for people who need it; a system where work pays, and one that the country can afford. This can be done while continuing to reduce the deficit, so future generations are not simply burdened with our debts.
Thank you again for taking the time to contact me.
