UK Deputy PM Rayner Calls to Strip Child Benefit from Middle-Class Families

Labour's Deputy Prime Minister Angela Rayner reportedly urged Chancellor Rachel Reeves to consider stripping child benefit payments from nearly half a million middle-class families with a top earner making between £50,000 and £80,000, a move that would reverse a key Conservative tax break introduced by Chancellor Jeremy Hunt in the 2024 Budget. This proposal, revealed in a leaked government memo, was part of a broader set of contentious cost-cutting and tax hike measures aimed at addressing the government's fiscal challenges. The Conservative reform had extended child benefit eligibility to families with earners up to £80,000, benefiting professionals such as teachers, junior doctors, and police officers, and was popular as it eased financial pressures on middle-class families. The leaked document acknowledged the political difficulty of reversing this policy, with Labour figures divided over balancing spending cuts and tax rises, and Prime Minister Keir Starmer facing internal dissent over welfare reforms. Hunt condemned the potential rollback as a betrayal of striving middle-class families, warning it would undermine Labour's image and worsen financial burdens on families. Alongside child benefit changes, Rayner also advocated for tougher restrictions on migrant benefits and NHS fees, illustrating the internal debate within Labour on fiscal priorities and welfare policies.