PARENTS on a low income could get more money in a shake-up of family allowances. The plans – which would cut or even axe the benefit received by middle and high earners – have been drawn up to make better use of the cash.

Currently every family is entitled to £13.20 per child per week.

The changes, which have yet to be approved, would mean those earning less than £39,000 would receive between £14 and £20.

But those over this threshold could end up with nothing.

‘The aim is to see if the £8m. per year that we spend on family allowances can be targeted towards the families who need it most,’ said deputy Social Security minister Dan Le Cheminant.

‘This is not a way of raising additional taxes to help fill the so-called black hole.

‘Nor is it a way of reducing the overall amount of family allowance paid out by Social Security. This is about redistributing the current pot.’

The proposals have been drawn up after a 2002 report found that 3,000 households in Guernsey were in relative poverty. Almost half had one or more children.

Deputy Le Cheminant, pictured left, said it would prove too costly to pay a big increase in family allowance across the board.

A consultation document outlining the idea and questionnaires are being sent to every Guernsey household this week.

The department wants islanders to send back their opinions.

‘We’re very keen to have feedback on this,’ said Social Security chief officer Malcolm Nutley.

‘Our minds are not made up and we’re very keen to find out how the public views this.’

The model is similar to those used in the UK and Canada. But it could prove to be an administrative nightmare for the income tax office.

All families would be still given a standard allowance but the money would be clawed back from higher earners by increasing their tax deductions.

Calculating rates for unmarried couples with children could prove particularly difficult.

Deputy Le Cheminant said Social Security would be working closely with the tax office to iron out any potential problems.

The extra administration would also mean there would be less money available for family allowance payments.

Islanders are being asked to return their responses by 31 August. The questionnaire can also be completed online at http://survey.gov.gg/fam.

If the changes are approved, they will not take effect until at least 2009.