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PostPosted: Mon Oct 04, 2010 10:08 am 
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Just seen the BBC News website. The government are to scrap child benefit for any household where one parent earns over £44,000. Households that have 2 people earning just below this threshold will keep the benefit! Government said it would be too difficult to means test but I thought they already did with the family tax credits!

This is a real blow for me! OH earns just over this, so we will lose out, or rather the kids will. I use the benefit to pay for their afterschool clubs and also for their clothes and school uniform.

Heyho, it's always those in the middle that get squashed!


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PostPosted: Mon Oct 04, 2010 10:24 am 
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We'll lose it too, as you say, it's always those in the middle! :cry:

So, does a joint income over £44,000 lose it too?

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PostPosted: Mon Oct 04, 2010 10:29 am 
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Haven't really looked into this, but what I heard briefly was that if two people in the household each earned say £40k they wouldn't lose it but if one earned more than £44k then they would.

So if this is the case then some households could be earning £86k and not lose it but others might be earning £45k and lose it.

Then if this is the case then it's shameful.

I might have misundertood it, and hopefully I have.


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PostPosted: Mon Oct 04, 2010 10:32 am 
No, I believe that is the case.
I suppose in the future they could iron out these anomolies but to get something through quickly, it's cheaper & quicker not to have to means test & to do it through the tax bands. I thought 50% was the higher rate band now? Maybe its time to jiggle the bands around again if they are going to give benefits based on them.


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PostPosted: Mon Oct 04, 2010 10:42 am 
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I was just listening to the preview for the Jeremy Vine show this afternoon and they're discussing it then. Something about you need to declare it and they'll tax it. So if you're earning PAYE and not asked, you can't declare - something like that. It all seems very shrouded in mist at the moment - lots of rumours. We need to know what's really going on!!

:shock: :shock: :shock: :shock: :shock: :evil: :evil: :evil: :evil: :evil: :evil:

I really think it's shocking, disgraceful and disgusting that one couple could be earning more between them than the £44,000 limit and yet still get it whilst others only just over (say) have to give it up. Shame on the government. Not well thought out at all - but I will await the final verdict!!

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PostPosted: Mon Oct 04, 2010 10:53 am 
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A reasonable idea in principle, but the way it is being applied is completely crazy. Joined up thinking - not. Well, we reap what we sow, I suppose...but I don't remember this being on the front page of either the Tory or the Lib Dem election manifesto! :roll:

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PostPosted: Mon Oct 04, 2010 10:57 am 
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I am surprised that something so patently unfair could even be considered. Like Plum my husband earns literally just over 44k, while I, as a stay at home mum, earn nothing. I wouldn't, in principle, be against the benefit being means tested, but the idea of a couple earning almost twice as much eg 80k+ and not losing it is ridiculous.
If one loses the child benefit does one also lose the Home Responsibility element which would go towards our pension contribution? Clearly the government doesn't want to support families where one member looks after the children!


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PostPosted: Mon Oct 04, 2010 11:21 am 
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ourmaminhavana wrote:
If one loses the child benefit does one also lose the Home Responsibility element which would go towards our pension contribution?


I also wondered this. I don't believe £44k is a high salary especially with the cost of living these days. Over the years I have needed my child benefit for my children. I know of a lot of people who have banked it all their kids' lives but for many people the child benefit is needed. Our income is over the limit and I will lose it, like I lost the 10 p tax threshold even though I am a low earner my husband is not. I am sure there are many many people, or their children who will be affected by this. I think I heard it kicks in in 2013. This little gem wasn't mentioned before the election I am sure!!!!!


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PostPosted: Mon Oct 04, 2010 11:30 am 
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I do not have an issue with the child benefit being scrapped as such, however I do have an issue with it being still in place for families where both parents are working and could be earning more than 44K (or whatever the limit is).

To implement this with the logic of "its the most straightforward thing" is bizarre!; as someone rightly pointed out, they anyway monitor the family income for tax credits, so whats the big deal in this case?!

The way I see it, families where one parent is a homemaker and looks after the kids will be penalised.
Further, they will in fact be taxed to continue this benefit for households which are earning more than the cutoff, which doesn't sound fair at all.

I can't understand why someone who is a homemaker is considered as "non-working"? Personally I feel that looking after home and kids is very important and should be considered as a full time job (paid for by OH) and there should be some IR nominal allowance (tax-free) for the same.

The social cost of not doing so is far greater.


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PostPosted: Mon Oct 04, 2010 11:41 am 
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Call me cynical, but this announcement about child benefit couldn't have been better timed for the purpose of burying this other piece of bad news: http://www.telegraph.co.uk/education/ed ... -year.html
:shock:

Not that I want to go OT, but just wondering if the government will back-track on the child benefit changes but the sting in the tail will be that our kids are effectively going to be hit when they are older. :roll:

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