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One area to consider is withdrawing family allowance or means testing for it. In the 2009 accounts around £9 million was spent on them. (I can't find a more recent figure apologies). It was originally brought in in the UK after the war to help reduce poverty in large families. I am unaware of why it was brought in here exactly but I would assume it was to stop poverty affecting children (very important and I totally agree with this principle). I can't help think that there are a lot of families that don't really need it here. Some do of course but Guernsey has a lot of affluent families too. They put the savings in a spare bank account for the child when they are older in a lot of cases. Which is very nice of course but we are at a point where we need to consider where savings are going to be made. Tough choices. Where would we prefer the savings to be made? A reduced health care service or removing universal family allowance? I was just wondering what over people thought of this? Perhaps it could be means tested so those who need it get it? (Unless the expense of running a means tested scheme cost more than the savings - the beauty of it now is the simplicity that we all get it). I offer the idea as it is an easy answer to help with the problem. It looks like a lot of money is being spent on the FTP (over 4 mill) to shave small amounts off everywhere else, but that is still not enough and higher taxes are being proposed which I am highly adverse to. Politicians are not making the savings/cuts they promised so I can see people not liking the idea on the basis they should make savings first. I also understand that people do value the allowance for other reasons as well. Thoughts?
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