Families may soon get more in allowances

Saturday 3rd June 2006, 12:00AM BST.

HIGHER earners could be hit in the pocket to help poorer families. Discussions have taken place between the Social Security and Treasury and Resources departments under the guidance of the social policy steering group.

Higher family allowances are being considered, which would be gradually withdrawn using income tax as people’s pay moves up the scale.

‘It’s a way of focusing the same amount of money where it’s most needed, giving the largest amount to people on low incomes,’ said group chairman Deputy Peter Roffey.

‘I don’t expect it will be universally popular. The articulate middle class will, as always, cry foul over it, but if we’ve got only so much money we can’t just throw it around. It’s one of the few options for helping those who need it most.’

A family allowance ‘clawback’ was raised as an anti-poverty measure two years ago.

‘I chaired a meeting with Social Security and Income Tax at which they said it was possible to do it.

‘Now it’s just a question of drawing up the details of the scheme and bringing it to the States.’

Social Security is expected to bring the report later this year.

‘It’s something we’re looking at with Treasury and Resources,’ said Social Security minister Mary Lowe.

‘The old Income Tax Authority would not cooperate, but the department has given us assurance that it will work with us about implementing a scheme if it’s feasible and the States agrees.’

During this week’s corporate anti-poverty programme debate, Deputy Lowe said the scheme had to be fair for all.

* The department rates higher earners as those making more than £35,000, of which there are about 7,000 in the island.


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