Isle Of Man / Ellan Vannin

Higher earners on Isle of Man to lose child benefit from April 2014

Higher earners in the Isle of Man will lose their child benefit from April 2014, it has been confirmed.

The changes, approved by Tynwald, will end payments to families earning more than £90,000 and reduce benefits for those with an annual income of £60,000.

Manx parents currently receive £20.40 a week for their first child and £13.50 a week for subsequent children.

Social Care Minister, Chris Robertshaw said they could not continue to pay people "who simply don't need it."

The changes were unanimously approved on Tuesday by Tynwald, the Isle of Man parliament.


Mr Robertshaw said: "The plan is to get our benefits system progressively more focussed and targeted."

The government said it would mean an annual saving of £2.5m.

The Manx government currently pays £16.5m per year in child benefit to about 9,500 families - representing about 16,500 children - regardless of income.

The government said families with an annual income between £60,000 and £90,000 will see payments reduced by 25% for every £10,000 band of income above £60,000.

In 2012, Chief Minister Allan Bell described the present child benefit system as "unfair and unbalanced".

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