Tuesday, November 16, 2010
From Yahoo! Finance:
LONDON (AP) -- Britain will cap payments to jobless families and scrap child benefits for high earners in a sweeping overhaul of the country's welfare system, Treasury chief George Osborne said Monday.
Osborne, who is seeking to save about 86 billion pounds ($135 billion) in government spending over the next five years, said the cost of welfare payments was out of control -- and rewarding some people for staying out of work.
At an annual rally of his Conservative Party, Osborne said Britain's coalition government would introduce a new welfare cap to make sure families in which both parents are unemployed do not receive more in benefits than an average family earn in wages.
Osborne also announced parents who earn more than 44,000 pounds ($70,000) per year will lose child benefit payments from 2013. Currently, all families are paid 20 pounds ($32) a week for their eldest child and about 13 pounds ($20) for other children. The benefits continue until the children are 19, if they stay in full-time education.
Read more here.