Child benefit to be scrapped for higher rate tax payers from 2013

bendix

i don't care about the details - whether two people earning £40k each can still get it, while a family with one earning £50k can't. Those are minor details.

This is obviously a step in the right direction. The concept of universal benefits is so conceptually wrong, that it's laughable. If everyone gets a benefit for having a child, how is that a benefit?

The idea of 'middle-class benefits' is not only conceptually flawed; it's also an complete betrayal of natural justice. An utter disgrace that we've allowed things to get to this point.

chucky

Graham_Devon wrote: »

It's a big blunder in my mind, but don't think it's enough to see an outgoing labour party win an election on!

Will only hit around 10% of the richest in society where both earn enough for higher rate tax. No one else will be that bothered....just the media will be all over this for a while I reckon.

that's not what i said.

every government will get things wrong - the framework is too complex to please everyone. i said this is a start of the coalition making blunders.

it's a good media winner - how much money it saves is another topic.
it could have gone much further.

Kenny4315

Seems a bit like they haven't thought the logic of this through properly. It should be based on total income of the family.

hermanmunster_3

looks like they will still be paying to be able to keep the old register going - just claiming it back in more tax.

tyllwyd

How will it affect pension entitlement for women - based on my OH's salary it looks like I'll lose child benefit, which obviously I'm not delighted about but that's the way it is. But at the moment I get credits towards my state pension because I'm claiming child benefit for a child under 12 - will that continue? Otherwise I lose out twice.

carolt

I am very strongly against, and think there will be a huge middle class blacklash against this - as Graham says, I think this will be the 10p tax rate fiasco for the Tories.

Am really angry - we will be affected, but are a long way off being 'rich'. The whole premise - that the person earning 18K shouldn't pay towards benefits for those on 50K is flawed, as that ignores the fact that the family on 18K will get:

their rent paid
tax credits of various types
council tax assistance
free medical/dental and optical care
free school lunches
free laptops
help with unfiform costs
etc etc etc

Plus will have work costs (transport, clothing etc) for only 1 person not 2, plus - most importantly of all! - have precious hours in their day to spend with their children, which a couple working and earning over 50K will not have. In practice, I would be very, very surprised if - certainly anywhere in the SE where rents are high - the take-home pay of the family on 18K weren't greater than the take-home pay of the family on 50K who aren't entitled to any benefits.

This just further decreases the incentives to go out to work, especially full-time.

Maybe I should persuade my OH now to go part-time - we're going to lose over £2250/year after tax - that is a LOT of money.

And how on earth does this tally with the Tories announcement earlier this week, that they're going to make work pay by allowing those who get a job to keep benefits? Does this mean that someone now unemployed who gets an identical job to me will keep the £2250 on top of other benefits, whilst we are punished because we've actually bothered to stay in work??? :mad:

As you can probably tell, I am REALLY, REALLY ANGRY. :mad:

It also is frankly a complete dog's dinner in terms of organisation - which idiot decided that it should be based on the income of the highest earner only? - bltant and frankly bizarre discrimination against families where one earner brings home most of the earnings - huge attack on stay-at-home mothers (or fathers) - who are already at a disadvantage in the tax-system which does not permit tax allowances to be transferred.

So much for the Tories supporting the traditional family!!

Pah. FURIOUS. :mad:

Graham_Devon

carolt wrote: »

Am really angry - we will be affected, but are a long way off being 'rich'.

Removed to save confusion!

carolt

Not as I understand it Graham - if either earner is a higher rate taxpayer, you lose the benefit.

drc

I wonder if this includes households where nobody works and they are getting more than £44k per year in benefits "income" at the moment (and not paying tax or NI on this amount which a working family on £44k a year would be)?

chucky

lostinrates wrote: »

TBH, I think £45k for a single person would allow you to bring up a child. Live like millionaires, no, but live healthy lives in most of the country (those pesky housing costs in some areas...).

exactly LIR - you can't expect to have everything your own way.
these people should feel lucky that they got it in the first place.

tyllwyd wrote: »

it looks like I'll lose child benefit, which obviously I'm not delighted about but that's the way it is.

that's very admirable of you and how it should be.

people can't claim to be "middle class" and then be supported on benefits - it's just utter nonsense.