MSE News: 'Re-think' over child benefit changes

zonecrew

Kitten-B wrote: »

Can i ask where have you read that 2011/12 income will be used in determining this? Nothing has been enacted and the changes are still in the proposal stage - I find it hard to believe that anything has been set down about this.

Even it had I find it equally hard to believe that 2011/12 income would be used. I would expect that it will be based on estimated income for the year (ie: starting 2013/14) and may exclude overtime/bonus. Something similar is being used for the withdrawal of higher rate relief to new childcare voucher scheme joiners which is about as similar a scheme administratively as you can find.

An email was sent to all staff where I work about it, not sure of the source. I suppose there is/was a chance that the originator was assuming that because the benefit was being stopped midway through the next tax year that this years tax figures would be used? I suppose we will find out on the 21st.........?

Hope2008

CW18, that's right it was called HRP but the scheme was stopped and has been replaced with another scheme (can't remember the name either) which is still linked to Child Benefit.

What happens when you have one higher tax payer in a household and the stay at home mum/dad loses CB and along with it no longer accrues qualifying years towards their pension?

Will there be another system put in place? How cost effect would that be? Will we be in a position where nothing is put in place and some will have a shortfall in their qualifying years when they reach pensionable age (I suppose that would be another saving!!!!)

fizzbom

In principal I believe high earners shouldn't need the child benefit however it's not that simple. There are many primary carers receiving the benefit (who either don't work or have very low paid work) but have partners earning more than the threshold and will therefore no longer qualify. There are likely to be many (typically women) who don't actually see or even know exactly what money is coming into the home for whatever reason. This source of essential income intended for the CHILD(REN) will disappear.

zagfles

wjpsmum wrote: »

My main worry if this change goes ahead is how do current stay at home mums get their accrued pension years?
Currently, until your child is 11 I think, if you aren't working so you can raise your children, and get child benefit, your state pension years are added to.
If they scrap child benefit for some mothers, due to partner/husband being a higher rate tax payer, how are these years then tracked?

This is unlikely to be a problem. First of all they've already hinted that nobody will be denied the right to claim child benefit, but they'll withdraw it from HRT payers via the tax system if they do.

Secondly even if they do stop the payment, there'll almost certainly be some scheme similar to the JSA NI credits - where people who aren't eligible for payment can still claim, get no money, but get their NI credits paid.

System

WestonDave wrote: »

The obvious solution is presumably to allow a parent to claim it if not paying 40% tax, but not if they are. So in a couple with one high earner and one low/non earner, the low earner claims it. That effectively sets the family threshold at £80k as is being hinted at.

City Banker earning £1million and stay at home mum with kids gets the child benefit. Don't see how that makes it fairer at all.

Cameron promoting family values? Married, 3 kids and making £45k as the sole worker, I should divorce her, live as a lodger and the wife still gets the Child Benefit. You are now officially better off living together not married.

Belly50

I think the benifit should be paid for 3 children only, too many people are having children they can't afford and expecting others, earning anything to pay for for them to stay home and be paid for it

jellyhead

Belly50 wrote: »

I think the benifit should be paid for 3 children only, too many people are having children they can't afford and expecting others, earning anything to pay for for them to stay home and be paid for it

Why 3? I can't afford 3, so I say limit it to 2

mummaof4_2

Why should we be limited to the number of children we have? what tosh! We chose to have 4 children, if we need to go without to provide for them then so be it!

My husband is the "breadwinner" earning just above the tax threashold. We have 4 children, don't smoke, don't drink don't have a mortagage, don't have expensive holidays. I am a part-time worker earning approx £8000 per year. Why should I have to say goodbye to my child benefit? It pays for my childrens needs ie school trips, haircuts, clothes, shoes, nappies in my opinion what it is there for!

ejc81

clearingout wrote: »

you'd think it would be that easy, wouldn't you? possibly the best solution to the issue. Take away everyone's child benefit (probably need to be done in batches with surnames/areas/by eldest child's date of birth...) and add it to the Tax Credit claim. How hard can it be?!:rotfl::rotfl::rotfl::rotfl:

No, no need for batches. Just scrap it full stop as of April and those who choose to claim it could claim through tax credits/HMRC. The only people benefiting from the current system are the people that are employed at the child benefit office

But no that would be too complicated for the government wouldn't it? How could they possibly manage without all the extra unnecessary administration and only one system to screw up

Actually was Cameron not muttering something about Universal Credits? Is that yet another seperate benefit process?

wjpsmum

Hope2008 wrote: »

Wjpsmum - spot on. From what I can see this point has been largely overlooked. I've contacted a few different agencies over the past few months and no one seems to have a clue what will happen. It's a really important point and we need clarification.

I wrote to our MP and she sent me a reply with a copy of the letter from the Minister for Pensions, Steve Webb MP, and he says that they are "considering the full implications of the changesannounced to Child Benefit and will ensure that those affected continue to receive NAtional Insurance credits towards their State Pension. Legislation will be brought forward in due course."

So hopefully they've got it in hand!