The rich pay 55% of Income tax in the UK, so what is the problem if they get a few ££££ back, the same with child benefit, it should be there for all parents or for nobody. the current system provides disincentives to middle income earners with children from taking promotion or working overtime if there is the risk of crossing the £50,000 threshold.
Personally, I would solve this problem very easily. In Hong Kong, you and your employer pay 10% of your wages, this is the equivalent of employer and employee NI, except this is in your own named personal social security fund. Young people can use some of it for a house deposit, It pays your health bills, it pay your underemployment benefits and it pays your pension. If you are unlucky or have long term illness problems, then the state backs this up in the event of the fund being depleted. When you die the fund is passed on to your offspring or relatives.
As a fully pre-funded system it is not a Ponsi scheme like our current pension system where you need more and more workers paying in as the lifespan and the number of pensioners goes up. Okay it would take 20 to 40 years to swap from the current system to a fully funded one, but the current system will require more and more workers as each generation retires and is clearly not sustainable.
It is these sort of radical market solutions that we need to get the country on its feet again, but is totally lacking with all the current incumbent political parties.

Vote UKIP.
