Child Benefit- is is now means tested?

summerday

Hello,

Sorry if the answer seems really obvious, but I know the Goverment has made a lot of changes to pregnancy and child related benefits and that Child Tax Credit thresholds have reduced and there was talk of making child benefit means tested. Please can anyone confirm whether this is now the case? I am pregnant and just trying to budget our finances for when we have the baby. I did google it but couldn't find a definitive, clear answer.

Many thanks, Summerday.

Spendless

Not at the min. In 2013 (AFAIK it hasn't been announced which month) it will be. If there is a higher rate tax payer in the household where child/ren live you will not be able to claim.

pigpen

Is it not going to be if one person earns £45K+ you won't be eligible.. I know it is rather a high wage and if both earn £44k you still get it as it is not a combined income but individual..

onlyroz

pigpen wrote: »

Is it not going to be if one person earns £45K+ you won't be eligible.. I know it is rather a high wage and if both earn £44k you still get it as it is not a combined income but individual..

Didn't nice Mr Cameron lower the threshold to around £40k?

izzybusy23

pigpen wrote: »

Is it not going to be if one person earns £45K+ you won't be eligible.. I know it is rather a high wage and if both earn £44k you still get it as it is not a combined income but individual..

Yes it's completely daft; a couple can earn £70k and still get it if earning £35k each but a family with sahm and a husband earning £40k+ won't be entitled. Crackers! I know they have to put a threshold in somewhere but this seems nuts.

Lunar_Eclipse

izzybusy23 wrote: »

Yes it's completely daft; a couple can earn £70k and still get it if earning £35k each but a family with sahm and a husband earning £40k+ won't be entitled. Crackers! I know they have to put a threshold in somewhere but this seems nuts.

Totally agree.

What makes it even more illogical is that two people earning 20k each take home more money than one person earning 40k. Yes they need a threshold, but clearly joint income is only fair. Or are the Government trying to increase stay at home parents going back to work and contributing to a growing childcare industry?

pigpen

oh £40k is it now? Even so.. that isn't likely to happen in here

FATBALLZ

izzybusy23 wrote: »

Yes it's completely daft; a couple can earn £70k and still get it if earning £35k each but a family with sahm and a husband earning £40k+ won't be entitled. Crackers! I know they have to put a threshold in somewhere but this seems nuts.

Not really, a working couple earning £35k each with a couple of kids could be paying out £1200 a month in childcare, and would likely need 2 cars for the 2 jobs, so most likely be worse off than a family that can afford for one of the adults to stay at home and earn nothing.

Violetta_2

http://www.moneysavingexpert.com/news/family/2010/10/higher-rate-tax-payers-to-lose-child-benefits
It's from April 2013
Child benefit will be removed from families where either parent earns enough to pay the higher 40% rate of income tax – currently around £44,000.

But two-earner households where neither parent's income is above this threshold will continue to receive the benefit – worth £20.30 a week for the first child and £13.40 for each additional one.

In some cases, this could result in families with an income of almost £88,000 receiving child benefit, while others on little more than half this sum lose out because one of the parents stays at home to look after the children.

onlyroz

pigpen wrote: »

oh £40k is it now? Even so.. that isn't likely to happen in here

Not sure the exact amount, but I know the 40% tax threshold was dropped in the last budget. I've so far managed to keep below it.

onlyroz

FATBALLZ wrote: »

Not really, a working couple earning £35k each with a couple of kids could be paying out £1200 a month in childcare, and would likely need 2 cars for the 2 jobs, so most likely be worse off than a family that can afford for one of the adults to stay at home and earn nothing.

I do kind of agree with this viewpoint - we pay a large amount each month for childcare, and we don't qualify for any kind of tax credits. The childcare vouchers help a bit, and once my daughter turns 3 the nursery fees will drop due to the "free 15 hours" - but it's still very difficult for families where both parents work.