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All told, about a third of Britain's 61 million people claim either a child subsidy or winter heating allowance.
LONDON — The British government said Monday that it would no longer pay a universal child subsidy to wealthier families, opening a campaign that may end up transforming Britain's welfare system by reducing benefits to the middle and upper classes.
They have released no estimate for their election pledges, but the mass circulation newspaper Bild projected that the increased child subsidy together with the pension increases could cost up to €15 billion a year.
Addressing some 600 representatives of her Christian Democratic Union and its Bavarian sister party, the Christian Social Union, on Monday, Ms. Merkel vowed that if returned to office, she would increase child subsidy, as well as retirement benefits for older mothers and lower-earning workers.
We have already received details of a £2,000 per child subsidy towards nursery or nanny, a rationalisation and – on balance – an increase in generosity of the pre-existing mish-mash of childcare support schemes, some of which the coalition had previously cut.
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And child subsidies aren't going to do it.
France's generous child subsidies, for instance, have been credited with lifting that nation's fertility rate above 2, from about 1.75 in the mid-1990s.
But the scale of government payments — 2.3 trillion yen in the case of the child subsidies — is hardly enough to fill the nation's huge demand shortfall.
It promised child subsidies, free secondary schools and guaranteed minimum pensions though often without explaining clearly how it would pay for them.
But creating more places to park the kids would not challenge the system a whole lot more than child subsidies do.
Governments in Europe were slower than in America to invest in mass education, but many continental countries built even bigger welfare states than Britain, with generous jobless benefits, child subsidies and income support.
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