The Church of England is urging the Government not to go ahead with its planned three-year freeze on child benefit.
Chancellor George Osborne announced in the Budget last year that the
universal weekly payment would be frozen for three years from April
2011.
The freeze amounts to a loss of around £73 per year for a family with
two children in the period from 2011 to 2012, rising to £192.32 per
year in the period 2013 to 2014.
The Government expects to save around
£3bn by 2015.
It admitted that the decision to implement the
cost-cutting measure had been hard but said the savings would go towards
higher tax credits for those on low incomes.
In its submission to the Government consultation on tackling child
poverty, the Church of England criticised the policy, saying that the
financial loss would be “particularly hard for those on low incomes”.
It is urging the Government to retain child benefit in its current form, warning that it is “vital” to tackling child poverty.
The Rt Rev John Packer, the Bishop of Ripon and Leeds said: “From my
experience of working with families in times of austerity, child benefit
really gets to the purse of the one who feeds and clothes the children,
it’s popular so its take up is large, it is simple and it is without
stigma.”
The review recommends that governments should not automatically
increase benefits for children but consider in each financial year
whether the life chances of poorer children will be increased more by
transferring any benefit increases into building the foundation years.
The Church acknowledges that intervention in the early years is
vitally important for children, but argues that household income also
matters to their wellbeing.
Its submission further states: “The cumulative effect on the income
of families with children, of the cuts in social benefits and services
is therefore a matter of great concern. They will not help the
Government in its stated aim of tackling child poverty.”
The freeze on child benefit was strongly criticised by campaigners when it was announced last year.
Bob Reitemeier, chief executive of the Children’s Society, said the measure was a “big blow for very vulnerable families”.