Child Benefit Changes in 2012

Flower76

Hi

This is the first time I've posted although I've visited the forums many times for the extremely useful information that people post.

My husband and I have 4 young children aged 6 and under. My husband had a pay rise last year which I think will mean that we will lose child benefit from next year.

I've found very vague information about the threshold for child benefit but does anyone have any other figures about the new cut off point? I've seen mentions of £37,000 and others that say £42,000.

After our 2nd child I worked evenings and Saturdays but then my husband's job changed which means he is away during the week sometimes so returning to my job was not possible.

We use this money every week as part of our budget and do not have any money left at the end of the month to save and we by no means live a "lavish" lifestyle. We shop at asda/aldi, I always shop around when renewing insurance/house insurance etc. and look for the cheapest deals on gas/elec. I transfer the credit cards debt to 0% cards to avoid paying interest. The children have a lot of "hand-me-down" clothes and my husband and I rarely buy new clothes for ourselves.

We try and cut back wherever possible but I just don't see how we will manage when we lose child benefit next year. We have no family nearby to help with the children so childcare costs would just be ridiculous if I were to go back to work at the moment. Once they are all in school it will be easier but that's a few years off at the minute.

I'm sure there will be people reading this thinking that we shouldn't have had 4 children if we can't afford to pay for them. At the moment we can afford it but if we lose this child benefit it will make things exteremely difficult.

So, does anyone know the real threshold for cut off for this benefit? Are there any e-petitions on the go to have the government re-evaluate their decision as I think it is unfair for a family with one income of £37,000 to lose the benefit yet a joint income family of £70,00 still receive the benefit. Or does anyone have any genuine work from home ideas for me please???

Many thanks!

Rose

gmang

Do you mean child tax credit or simple child benefit? I thought the latter was not means tested?

cord123

I think you are confused, tax credits are means tested, child benefit isnt...... child benefit being the £20 for first child then £16 (i think) there after?

Flower76

I mean child benefit. We had child tax credits stopped for us earlier this year. Child benefit isn't currently means tested, you get about £20 for the first child then about £13 for every child after I think, something like that anyway (this is per week).

The government decided earlier this year that if one person/parent is a higher rate tax payer then child benefit would be stopped, I think from April next year. I can't for the life of me think why they can only base it on one income in the household when the current child tax/working tax credit system takes into account all household incomes. Why child benefit can't be linked in with child tax credits I'm not sure. Except for the fact that the whole tax credit system is completely flawed and doesn't work well at all..............

choccyface2006

No I think the op is talking about Child Benefit. I have just panicked is case mine is withdrawn and found this which should clarify things.

2. Child Benefit will be frozen and then withdrawn from higher rate tax payers

• Child Benefit will be frozen for 3 years
• Child Benefit to be withdrawn from higher rate tax payer claimants from 2013

From 2013, any Child Benefit claimed by one or more parents or carers who earn £44,000 or more per year would be recouped through their income tax.
This amount only applies to one person. So two parents each with an income below £44,000 will keep their Child Benefit even if their joint income totals more than £44,000. The £44,000 is the current rate at 2010.

When will the change happen?

Child Benefit will be frozen from April 2011 to 2013 and then withdrawn from higher rate taxpayers from 2013.

Sarah x

Hovel_lady

This may help...

http://www.channel4.com/news/q-and-a-on-child-benefit-changes

Oldernotwiser

Child Benefit is being scrapped for higher rate tax payers ie. those individuals earning about £44,000.

Flower76

I think it should take into account joint incomes though. If a household can earn £80000 and still claim child benefit how is that right when a family with one income of £44000 can't?

pinkpig08

If it doesn't take into account joint incomes and is not means tested, what if the child benefit is in my name but my husband earned more than £44,000? They don't ask for income details on the claim form do they?

Flower76

Our child benefit is in my name but it's my husband that works too. Earlier this year they were talking about sending out some kind of letter to every household and you had to simply tick if one person in the house earned over £44000 or whatever the limit is. Not exactly a fool-proof system is it?! I've just done a bit more looking into it and I think the changes come into effect in 2013 rather than next year which makes me feel slightly better although I'm still not sure how we can cut back for then either!

midnight_express

Have a look on the debt free want be and old style forums for ideas on cutting expenditure.