Changes to Child Benefit

[marley2580]

So as of April next year any household that has a wage earner paying 40% tax will lose their child benefit https://www.bbc.co.uk/news/uk-politics-16539428

Is it right? Is it fair?

I personally think it's totally unfair. My OH earns just enough to push him into the 40% bracket, but once this next baby comes he will be the only wage earner in our household. Yet a family where both parents work, bringing in much more money than my OH does, will get to keep theirs.

 

[braddys]

Personally i think everbody should get the same, regardless of what they earn. thats the only way to make it fair.

 

[midori1999]

I think they should either base it on household income or make it a universal benefit like it is now. It's beyond ridiculous that a household that earns £75,000 split between two seperate wages can still get that benefit, but a household with one wage of £45,000 can't get it.

 

[Ozzieshunni]

I think it should depend on the cost of living in that area. For example, DH makes about £12,500/year and we live quite comfortably. Whereas a family in London probably wouldn't do as well on that income.

 

[tallybee]

So as of April next year any household that has a wage earner paying 40% tax will lose their child benefit https://www.bbc.co.uk/news/uk-politics-16539428

Is it right? Is it fair?

I personally think it's totally unfair. My OH earns just enough to push him into the 40% bracket, but once this next baby comes he will be the only wage earner in our household. Yet a family where both parents work, bringing in much more money than my OH does, will get to keep theirs.

Same here. He is also the only regular earner (I have done casual work but nothing regular as I am studying for my degree)

I think they should either base it on household income or make it a universal benefit like it is now. It's beyond ridiculous that a household that earns £75,000 split between two seperate wages can still get that benefit, but a household with one wage of £45,000 can't get it.

Absolutely agree with this.

DH is the sole earner in this house. The child benefit is the only regular income in my name. DH isn't their biological father, but his income will mean losing CB.

Also, I know a lot of people will say that we must be comfortable with an income high enough to pay the 40% tax rate. BUT a) it's only just high enough to be in that bracket and b) he (completely rightly, not complaining that he pays this) pays a large sum each month to his ex towards his boys (more than our mortgage actually ) which obviously means what we have each month is a lot less.

The way they're just applying this across the board, with no regards to anything is completely barmy.

It's not as if the economics of it even make any sense. Removing CB in the way they are is apparently expected to save £1 billion a year (https://www.bbc.co.uk/news/uk-politics-11465116). Closing tax loopholes to make sure the super-rich pay their correct share rather than hiding their fortunes offshore could bring in £7 billion a year (https://www.bbc.co.uk/news/business-11411840)

Can anyone tell that this policy really hacks me off?

 

[Nibblenic]

Its a complicated one. On one hand they couldnt do it biased on income/outgoings/area like they do other benefits without opening a whole new department for it. Which would then mean savings created by the cut would dissapear and infact it may even cost more.

So although I do think it is unfair, that some households will on a technicality get more.

I dont think CB should be for everyone. I dont think its fair that the taxes of someone earning say 15k a year will go to say Jamie olivers kids. If you see what I mean

My mum is just over the 40% in her earning and although she gets almost 3x's what OH earns on the top thier take home doesnt reflect that at all.

I do think however they gave fair warning in this cut. I know yes you live by your means so if you income is a little over 2200 you will have more outgoings than someone who gets less than half that. However as a percentage of income it is much less than what the poorest families in this country get.

I cant think of a fair way to do cuts, without creating costs.

I also think it is a shame that the conservatives said that they would support families and make sure they were at least equal to single parent families. I dont see how this move is helping a 2 parent family.

 

[indy and lara]

I don't agree at all. If it was based household income then I have no problem with it but allowing households with incomes of £80k to keep it but those with one 40% taxpayer to lose it is not fair in the slightest. We only have 1 salary coming in, have never received any kind of tax credit and only get CB. Yes it will not mean we cannot survive when we lose it but there comes a point where you get sick of giving over and over again.

 

[Blah11]

I don't agree at all. If it was based household income then I have no problem with it but allowing households with incomes of £80k to keep it but those with one 40% taxpayer to lose it is not fair in the slightest. We only have 1 salary coming in, have never received any kind of tax credit and only get CB. Yes it will not mean we cannot survive when we lose it but there comes a point where you get sick of giving over and over again.

I agree with this. Thats the only thing that irks me about it but other than that, I agree with nic.

 

[24/7]

I also think it should go on household income and not one persons income. My OH is just on the edge of going into the higher tax bracket, but its literally going to be pounds over if he does and we will lose our CB because of it yet my wage is going to be almost nothing when I go back to work so his salery will be all our incoming.

 

[xolily]

what are their excuses for it NOT being household income? they must realise it's unfair.. so why not just change it?

 

[marley2580]

Something to do with the cost of administrating it apparently

 

[Blah11]

but they already do tax credits based on household

 

[feeble]

It MUST be based on household income or it is highly unfair and COMPLETELY ignorant of what child benefit is for... CHILDREN!!!

Of course if you have children it is likely that there will be one high wage earner and one not so high or even off work!

how they can be penalising SAHM and part time working mothers like this and allow families earning 75k together access to the benefit!

badly thought through NONSENSE!

 

[KaceysMummy]

I think they should base it on household income and household numbers...

 

[Nibblenic]

but they already do tax credits based on household

And look what a mess they make of those! They cannot recruit any more staff and we all know what its like trying to get hold of that department at re-newal time, so they obviously cant cope with more work load.


Having said all that. I dont know how its going to be checked. I mean at the point of Lo's birth Oh was getting half of the anual wage that the 40% bracket covers. However by the time Lo is 16 he may well be over that, it is a very long period of time people claim for. Im sure not everyones gonna be picking up the phone and be like 'oh yes dont give me the money i earn too much now'

Since it is most common for men to be the main wage earner. As women are normally still in lower paid jobs or working part-time (yay feminism! ) Almost all women I know have the claim put into their account. So how is it going to be monitored anyway?

 

[tallybee]

^ They'll probably just send us all out a letter stating that if we do not report our circumstances we will be fraudulently claiming it if DH/OHs income is above the threshold. Meaning that to avoid being in the wrong a lot of people will spend a lot of time and phone bill trying to get through all at the same time

 

[feeble]

It really doesn't need to be as hard as they make it.

All they need to do is base household income on address, have a system which bumps people up according to the band they are in, and do it automatically

The only reason tax credits/child benefit and in fact all other benefits are such a faff, is because they get people (us) involved in it! There is no need to be!

Tax credits are based upon your income according to the tax office, which is why you need your p60 to apply for them, so you are basically taking a piece of paper, that the tax office has sent you, filling in a form telling the tax (credits) office what you earn and sending it back to the tax office!!!

It's absurd! It should be totally automated, so everyone who is ellegable for tax credits should just get them automatically, no faffing, no explaining to one side of the tax office what the other side already knows and no errors!

The whole system needs an upheaval and fast.

Same needs to be done for housing benefit, child benefit and any income support etc. basically we have five or six systems all working on a formula based upon all the other things not going wrong and most importantly, human error not being a factor.

 

[Nibblenic]

It really doesn't need to be as hard as they make it.

All they need to do is base household income on address, have a system which bumps people up according to the band they are in, and do it automatically

.

The thing is though what about people who do generational/family living. The household income for us is well into 60k if not more. My Oh's and mine income is 18k. I dont see any of the other money coming into the house as its not mine/ours. So if they couldnt base benefits on money people might have no access to.

 

[feeble]

It really doesn't need to be as hard as they make it.

All they need to do is base household income on address, have a system which bumps people up according to the band they are in, and do it automatically

.

The thing is though what about people who do generational/family living. The household income for us is well into 60k if not more. My Oh's and mine income is 18k. I dont see any of the other money coming into the house as its not mine/ours. So if they couldnt base benefits on money people might have no access to.

Hmmm, well in cases like that it would be important for it not to be totally automated, but still mostly automated with room to adjust but not based totally on human adjustment as it is now...

 

[tallybee]

^ I was also going to say about peoples' living arrangements not allowing for it to be as simple as that. Lots of addresses have more than one 'household' living there - as mentioned by nibblenic people have family members living together, then there are those living in shared houses, etc. etc.

But yep the system is ludicrous at the moment.