Child Benefit Frozen?

loucroft

Hi guys

I'm a bit confused.

We only get child benefit from the government as hubby is a higher earner so all others not currently available. Have 2 young children. I am self employed.

Is it right that it's child benefit (that currently everyone is entitled to and is not means tested) that is to stop / be frozen for three years?

I'd be grateful for your advice!

Thanks, L

keith1950

Hi, as I understand it, from April 2011 the rates of child benefit are frozen at their current levels for 3 years. Additionally from April 2013 at the latest and possibly earlier, child benefit will be permanently withdraw from families that have one partner earning in excess of £42,375 gross.

loucroft

Thanks for clarifying Keith. For me that means we will no longer get anything from the government. I asked as a friend was sure that wasn't affected.

So, to clear up this will be frozen so for 3 years nobody will receive it, then after that period only those with one or both earning under that figure will receive it?

Basically, if one partner earns over that, even if the other doesn't earn anything, it will be withdrawn completely

loucroft

oh my goodness, from april this year? I thought we had longer than that!

no-oneknowsme

loucroft wrote: »

So, to clear up this will be frozen so for 3 years nobody will receive it, then after that period only those with one or both earning under that figure will receive it?

When the other poster told you it would be frozen for 3 years they didnt mean that it would be STOPPED for the 3 years (as i think you have interpretted it ?)

What they mean is that the rate at which it is paid will be frozen eg if at the min you receive £20 for one child , this amount will not increase so you will receive the £20 for the next 3 years (instead of it rising by a few pence every April).

After the 3 year period it will be withdrawn from the higher earners.

zagfles

loucroft wrote: »

Thanks for clarifying Keith. For me that means we will no longer get anything from the government. I asked as a friend was sure that wasn't affected.

So, to clear up this will be frozen so for 3 years nobody will receive it, then after that period only those with one or both earning under that figure will receive it?

Basically, if one partner earns over that, even if the other doesn't earn anything, it will be withdrawn completely

I think you misunderstand the term "frozen". It just means it won't increase with inflation, you'll get the same amount next year as this.

no-oneknowsme

lol cross posted Zagfles

loucroft

LOL I think I panicked!

I think I realised for me, unless circumstances change, it will stop in 2013 then I read frozen etc!!

Thanks for clearing that all up for me, at least that's sorted you're a great bunch!

schoolrunmum

How do they classify "high earner"???? We "pay" ourselves 5k a month from savings (DH is retired but not yet drawing pension)..so that puts us in high earner category-but it's not earnings,but savings that we've already paid tax on.....d'ya reckon our CB will be stopped??

eslick

schoolrunmum wrote: »

How do they classify "high earner"???? We "pay" ourselves 5k a month from savings (DH is retired but not yet drawing pension)..so that puts us in high earner category-but it's not earnings,but savings that we've already paid tax on.....d'ya reckon our CB will be stopped??

you dont have earnings so wont be affected

keith1950

Hi, taking £5000 / month from savings is not 'earnings'. I would assume that unless your interest on your savings is more than £42,375/annum you should be ok.