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MSE News: Budget 2012: Child benefit cut partially reversed

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MSE News: Budget 2012: Child benefit cut partially reversed

edited 21 March 2012 at 3:05PM in Benefits & Tax Credits
120 replies 21.6K views
Former_MSE_HelenFormer_MSE_Helen
2.4K posts
edited 21 March 2012 at 3:05PM in Benefits & Tax Credits
This is the discussion thread for the following MSE News Story:

"Chancellor George Osborne has partly reversed a planned cut in child benefit, meaning more families will be entitled to help, though anomalies still exist..."
Read the full story:
Budget 2012: Child benefit


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Replies

  • [Deleted User][Deleted User]
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    Funny how they don't want to look at a couples combined income when it comes to deciding this alteration to child benefits
  • rippedoff3rippedoff3 Forumite
    315 posts
    How will this work? Will it be based on gross or net income?
    Still think its very unfair. My Dh works very hard and works very long hours to earn approx 50k he pays the higher tax rate and we chose for me to stay at home with our four children. We lose the child benefit but my next door neighbours both earn £30K and receive it as well as paying lower tax. Why not make it fair per household income?
  • It's certainly an improvement on the previous proposals. Yes, the anomaly of the £60,001 single income family still exists, but there will always be these kinds of issues with taxation, or at least until the Government and HMRC have a way of giving a household tax allowance for the year and couples can share that between them as they wish - and I'm guessing that the systems that would need to be in place for that to work would be expensive, complicated and not worth the benefits to the economy.
  • jenfajenfa Forumite
    125 posts
    As a result of my husband's pay we will lose the child benefit even though I don't work. What I am interested in is the credit that I thought I received by claiming child benefit against my National Insurance premiums that I can't pay because I am bringing up a child. I am sure when we originally applied for CB this was included does anyone know what will happen to those?

    If I asked my husband's bank or employer how much he earned they would say that is confidential but the child benefit is in my name so I'm not sure how this is going to be administered because he does not have to tell me how much he earns.
  • GaspodeGaspode Forumite
    25 posts
    interestingly they were capable of basing child tax credit on household income, but child benefit is too difficult to calculate in the same way....
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  • rippedoff3rippedoff3 Forumite
    315 posts
    blue_angel wrote: »
    It's certainly an improvement on the previous proposals. Yes, the anomaly of the £60,001 single income family still exists, but there will always be these kinds of issues with taxation, or at least until the Government and HMRC have a way of giving a household tax allowance for the year and couples can share that between them as they wish - and I'm guessing that the systems that would need to be in place for that to work would be expensive, complicated and not worth the benefits to the economy.

    They seem to be able to control the council tax very well based on those living in the house, why not use this way to determine child benefit? They would save a lot of money this way capturing a lot more people
  • MrChipsMrChips Forumite
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    Are there any detailed proposals re the child benefit changes?

    What I am wondering is how the £50,000 test is assessed. Is it based on earnings in the previous tax year, or the rate of earnings in the current year? If the latter what happens if, for example, someone is on £50,000 basic salary, and then at the end of the year gets a £10,000 bonus taking their annual earnings to £60,000. Would they have to pay back a full year's child benefit?
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  • logyonlogyon Forumite
    358 posts
    if my partner earns 22,500k-23,500k and i earn about 5,800

    With this new budget what will i get

    Still get my chid benefit 20.xx per week?

    Child tax credit ?? will this stop or be reduced
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  • squirrelzsquirrelz Forumite
    147 posts
    There seems a lot of detail left to iron out.
    • What about separated parents
    • What about blended families
    • What about both parents earning over £50k, do they work the 1% redeuction per £100 over, using the higher or lower salary, or the average?
    • Is it salary, or does it take into account taxable benefits like car allowance.
    Why pay more than you have to?
  • melly1980melly1980 Forumite
    1.9K posts
    Naturally I am pleased with the alteration because I am on the initial boundary proposed. The pleasing thing IMO isnt this though, I'd have no issue if they kept it at the 40% boundary, it is the cliff edge that was the problem and now that it is phased away it is a much better proposal.
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