The government in the UK is expected to announce a cut of _10 in child benefits as part of the upcoming budget.

Data show that 600,000 households in the country receive a universal child benefit of _140, which will now be reduced to _130 as part of the government increase savings. The cut will save _138 million for the government in a year and will be the biggest cut in social protection scheme.

The Cabinet ministers are holding meetings to discuss the budget that is set to be announced on next Wednesday. The Department of Health is proposing a "payroll tax" to fund increasing funding on health in the country. A report from the Department of Health has also called for increasing taxes on alcohol and the introduction of "sin taxes" on certain food items, besides a payroll tax.

The report says that these taxes would help reduce the consumption of alcohol and help boost revenues for the government. There are also indications that the government might double the 50 cent prescription charges in the Budget while it will also consider introducing charges for home package of free TV licence, electricity and telephone allowances.