Proposal for Child Benefit Reform

Objectives;

1. Remove any financial incentive to have more than 2 children
2. Contribute to drive for lower UK population (~45 million)
3. Maintain overall cost of child benefit
4. Focus benefit where most needed

Proposal;

Child benefit for first child only
Double current payment

How Objectives Are Achieved;

• Objective 1&2 are obvious - double benefit allows for 2 children but gives some incentive to stop at 1
  
• Child benefit currently paid for 2 children - check this - therefore overall cost should be slightly lower
  
• Poor families will receive existing means tested benefits
• No longer paying benefit for third child to those who can afford it