'Abolish' child benefit for wealthy

Changing the rules could help poor families

Child benefit should be abolished for children over 16 in wealthy families, according to an influential think-tank.

Any increase in the contribution demanded from the middle classes will be politically difficult. But the Prime Minister may have to risk rebellion in Middle England...Although the proposal may be politically unpalatable, it is justifiable

IPPR report

According to a report by the Institute for Public Policy Research (IPPR), the money would be better spent on helping sixth-formers and students from poor families.

The report, Opportunity for Whom?, proposes that a national system of "Education Maintenance Allowances" would help young people to stay on and complete A levels and increase their chances of progressing into higher education.

Child benefit is currently paid to all families with children between 16 and up to 19 years old, if they are studying for A levels and NVQ Level 3 or equivalent.

Widen appeal

The government wants half of under-30s to go into higher education by 2010.

To achieve this target, the government will need to increase the number of children from working class homes going to university.

More than 70% of professionals' children win places, compared to less than 20% of those from the homes of manual workers.

The reports authors Wendy Piatt and Peter Robin believe that "intervention" and direct financial assistance is essential to increase these young people's chances.

Maintenance payments

To help working class student afford to remain at school to gain the necessary qualifications and consider their education, a system of "Education Maintenance Allowances" should be introduced.

Payments of up to £40 a week have already been piloted in poor areas as part of the Government's Excellence in Cities programme.

However, any proposal to streamline child benefit, could be political dynamite for the government.

"Any increase in the contribution demanded from the middle classes will be politically difficult.

"But the Prime Minister may have to risk rebellion in Middle England... Although the proposal may be politically unpalatable, it is justifiable, " conclude the report's authors.