Loss Of Child Benefit Could Lead To Salary Negotiation

The Government’s announcement to cut Child Benefit for those in the higher tax bracket created quite a storm. Whilst the need for the country to save money is well understood the unfairness of the tools used to decide whether or not a person is eligible raised the hackles.

A survey conducted by online recruitment specialist Recruitment Genius found that whilst 71 per cent of those surveyed agreed that the changes to Child Benefit were necessary making the decision based on an individual’s tax was wrong.

As with every decision a ripple effect occurs and the implications this decision has for employers is that employees are likely to either enter in package negotiation which enables their salary to fall below the threshold or to request a significant increase thereby filling the gap created by the loss of Child Benefit.

So at a time when the job of recruitment is difficult enough it looks as though things might get even more confusing.


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