MSE News: Chancellor: child benefit cut will go ahead

leereni

I just checked and of course don't qualify for working tax credits. I had a look at the tables and they make sense. I don't understand how people can get this benefit who earn uptp £41000. Is it if they have a disabled child?

zagfles

omcornwall wrote: »

I just checked and of course don't qualify for working tax credits. I had a look at the tables and they make sense. I don't understand how people can get this benefit who earn uptp £41000. Is it if they have a disabled child?

Child tax credit. Anyone with a child earning under £41,000 can get child tax credit this year. Last year it was £58,000. Try the HMRC calculator or entitledto.

Next year the limits are lower for most people, it'll be about £32k if you have 2 children, or about £45k with 4. But much higher if disabilites or childcare etc.

leereni

Or if you lie on the application form.....

gibson123

Am I missing something here? doesn't the 40% rate start at £37,400 and is reducing from April to starting at £34,371. See extract from HMRC below. I earn just short of £38,000 per year. I am a single parent and the ONLY benefit I have is child benefit. This is the difference between us having a family holiday or not. I am very careful of my spending and since last year between rising costs of petrol, train travel and other costs, we are already almost £250 a month worse off. I am already struggling, we cut back drastically at Christmas and on day to day expenses just to get by. There is no pay rise on the horizon for me and as I am working on average 10 additional unpaid hours a week since last year, as staff cuts take place. Yes I make a good wage but I have put myself through university not once but twice and I work extremely hard. Sorry Mr Osborne, you have to re-think, it feels like us hard working families (to use your own spin) are not only working harder but being punished for being successful.

Income Tax rates and taxable bands
Rate
2010-11
2011-12
2012-13
Starting rate for savings: 10%*
£0-£2,440
£0-£2,560
£0-£2,710

Basic rate: 20%
£0-£37,400
£0-£35,000
£0-£34,370

Higher rate: 40%
£37,401-£150,000
£35,001-£150,000
£34,371-£150,000

Additional rate: 50%
Over £150,000
Over £150,000
Over £150,000

DaisyFlower

Whilst it wont affect us, I think its a bad move. Child benefit should be universal or not paid at all. It will lead to only those on benefits or huge top up benefits being able to afford children and is that something we really want to encourage? Children born to those who have worked hard in life are far more likely to go on to more pay more taxes whereas those on benefits often claim themselves.

zagfles

gibson123 wrote: »

Am I missing something here?

Yes. You need to add on the personal allowance. Then it comes to £42475 this year and next.

Next year the personal allowance is going up £630 but the basic rate band is going down £630 so they cancel out - making the higher rate threshold the same.

pmlindyloo

Just to add my bit!

I agree absolutely that the presently proposed system will be unfair. I also agree that it is based on a political move (let the rich pay up) as well as trying to save money.

One of the problems is that the new system does need to save money. Unfortunately if the system put in place to operate the benefit becomes too expensive or unwieldy then it won't be done. it is not an easy benefit to adminster if it becomes 'means tested' (as we all know from the current benefits system.)

Personally, I think CB should only be paid out for the first 2/3/4 (take your pick) children in a family. This could not be retrospective (in my opinion) but could start from a certain date (obviously 9/10 months from that date!) Then everyone would know and plan accordingly.

I am strongly in favour of this idea as I do not believe that you should be having children if you haven't planned for them financially and it would also stop this ridiculous (in my opinion) belief that we all have to support children no matter what the circumstances.

I expect a barrage of replies disagreeing with me but, as I say, it is just my opinion. In fact I am sure it will never be adopted as the 'taking away my rights' brigade and the political repercussions of such a system would make it a non starter.

zagfles

pmlindyloo wrote: »

Just to add my bit!

I agree absolutely that the presently proposed system will be unfair. I also agree that it is based on a political move (let the rich pay up) as well as trying to save money.

One of the problems is that the new system does need to save money. Unfortunately if the system put in place to operate the benefit becomes too expensive or unwieldy then it won't be done. it is not an easy benefit to adminster if it becomes 'means tested' (as we all know from the current benefits system.)

Personally, I think CB should only be paid out for the first 2/3/4 (take your pick) children in a family. This could not be retrospective (in my opinion) but could start from a certain date (obviously 9/10 months from that date!) Then everyone would know and plan accordingly.

I am strongly in favour of this idea as I do not believe that you should be having children if you haven't planned for them financially and it would also stop this ridiculous (in my opinion) belief that we all have to support children no matter what the circumstances.

I expect a barrage of replies disagreeing with me but, as I say, it is just my opinion. In fact I am sure it will never be adopted as the 'taking away my rights' brigade and the political repercussions of such a system would make it a non starter.

In fact this is already happening to some small extent, with the £26k cap on benefits which will mainly affect larger families.

gibson123

zagfles wrote: »

Yes. You need to add on the personal allowance. Then it comes to £42475 this year and next.

Next year the personal allowance is going up £630 but the basic rate band is going down £630 so they cancel out - making the higher rate threshold the same.

Thank you, very helpful, doesn't change my view though, I still feel that people who earn a decent wage but not huge are the one's most targeted for paying of the deficit.

Tebheag

Why cant they wait till you have your children in school to stop it ! My hubby is on £43k but I only earn about £2k as onlywork one day a weekend don't mind my child benefit stopping in 3 yrs as I will be able to work a lot more hours !
Perhaps they should put a cap on how many they will pay for as some familys have 6 kids or take a closer look at the hundreds of people coming into this country to work for a a while so they can claim child tax credits child benefits then they go back to their home county still recieving money !