Child Benefit axed for higher income families

JoJoB

If your family income is over £44,000 then no more child benefit - how will this affect you?

http://www.bbc.co.uk/news/uk-politics-11464300

£44,000 sounds a lot - but what if you live in London with a high mortgage for a modest home and rely on child benefit for essentials? I think a lot of people will be hard hit by this.

go_cat

I was a bit confused by this - if you are a couple on £22k each with a combined income of £44k you are not on higher level tax which is what the article i read refered to

csh_2

The article says planned from 2013 but tbh I can't see it actually happening.

It would cost more to implement than they would save. I forsee another tax credit call centre style disaster with this one.

Also what may become a famaliar senario: father earns just below the threshold, family lose tax credit and child benefit for 3 children due to mothers low income earnings just tipping them over. So the mother gives up the 16 hr a week or whatever job.

I think £44k is too low. It really isn't that *high* an income for a family with a mortgage as you say anywhere in the country let alone London.

boliston

I thought the whole point of a "benefit" is that it's designed to help those on low incomes - if a millionaire can claim that same benefit without question then it's not being properly targeted.

People should realise that having kids is an expensive hobby!

go_cat

boliston wrote: »

I thought the whole point of a "benefit" is that it's designed to help those on low incomes - if a millionaire can claim that same benefit without question then it's not being properly targeted.

People should realise that having kids is an expensive hobby!

I completely agree with you on a high salary you should not get it, just do not agree if a couple on £22k each should be losing it as well that is not a high salary

gonzo127

to be honest from my point of veiw anyone who is struggling on 44k a year must have over streached themselves quite badly, my household income including all benifits we are entitled to is under 30k and we survive on that with a family of 5, mortgage, other debts etc

csh_2

gonzo127 wrote: »

to be honest from my point of veiw anyone who is struggling on 44k a year must have over streached themselves quite badly, my household income including all benifits we are entitled to is under 30k and we survive on that with a family of 5, mortgage, other debts etc

Sweeping generalisation.

liney

csh wrote: »

Also what may become a famaliar senario: father earns just below the threshold, family lose tax credit and child benefit for 3 children due to mothers low income earnings just tipping them over. So the mother gives up the 16 hr a week or whatever job.

No. That's not how it will work. If neither pay 40% they will be entitled.

They are not taking into account household income, they are simply saying if one person in the house pays 40% tax then those in that house will not get child benefit.

ie If both earn 40k each, they will still be entitled. If one earns 45k and the other earns nothing, they will not be entitled.

I suppose the response is, it's not the governments fault only one of you choses to work.

got-it-spend-it

gonzo127 wrote: »

to be honest from my point of veiw anyone who is struggling on 44k a year must have over streached themselves quite badly, my household income including all benifits we are entitled to is under 30k and we survive on that with a family of 5, mortgage, other debts etc

But for someone living in a relatively expensive part of the country, who has bought a house near the top of the market, went to university since the abolition of grants so has a student loan to pay back too then suddenly £44k household income isn't huge at all.

csh_2

liney wrote: »

No. That's not how it will work. If neither pay 40% they will be entitled.

They are not taking into account household income, they are simply saying if one person in the house pays 40% tax then those in that house will not get child benefit.

ie If both earn 40k each, they will still be entitled. If one earns 45k and the other earns nothing, they will not be entitled.

I suppose the response is, it's not the governments fault only one of you choses to work.

That article has been extended. It wasn't as detailed first thing this morning.
It said 'families with income of over £44k' and made no mention of one parent or the other.

cheepskate_2

boliston wrote: »

People should realise that having kids is an expensive hobby!

BUt in this country there is a whole host of people who do not even think about how to support themselves never mind the hoard of children they will spin out.

Its now not benificial to be a hard working parent couple in this country,