How to save a million pounds

I have an idea which can potentially save Guernsey a million pounds every five years.

Scrap child benefits.

Change the rules so that nobody has an automatic right to receive this benefit from the state system.

This will cause discomfort to some and hardship to others but that is the cost of saving money. Someone has to suffer.

I know this idea sounds somewhat to the right of Ghengis Khan politically but bear with me.

Only provide support to those who need it. Those individuals and families who could not survive without the financial support currently provided by the benefit system.

But if we’re to keep paying these needy people then why suggest the change in the first place?

Because a lot of benefit money is going every year to people who don’t really need it.

Child benefit is currently paid for every child born in Guernsey. It doesn’t matter if the family struggle to feed the existing mouths or merely struggle to decide whether to take the nanny on holiday with them or leave the children behind.

Admittedly this is at the extreme but there are a lot of families for whom this benefit is a nice bonus rather than a dire necessity.

So why are we paying money to high income earners or those who are relatively wealthy?

There will be the argument that a change is to difficult to administer and will cost more than it saves. But why?

How difficult is it to work out a family’s income level? Doesn’t the tax office have this information?

Perhaps they’re too busy and can’t be disturbed. Then why not get people who wish to apply for this support to submit their tax coding notice?

At present, I estimate that child benefit costs the States some £490,000 per year (based on current birth rates and a population of 62,000).

Being such an affluent Island I suspect that up to 50% of those families currently benefiting earn more than the average Island wage. That’s a potential saving of £245,000 a year and with less people benefiting, the overall workload, including the means testing element, should be about the same.

But before we leave child benefit, we also need to stop the baby factories. Those mothers which keep having children in part because it pays them to do so.

Change the law, to take effect in 9 months time, so that child benefit is paid only to the mother and only for the first three children; a limit which will encourage some population growth without allowing people to milk the system.

If you want additional kids then earn enough to pay for their needs. If you have a religious objection to family planning then let your church support you. Otherwise act responsibly and live within your means.