Child Benefit cuts

DannyboyMidlands

Life aint fair. Get over it.

banner188

All child benefit should be abolished.
Then all that money should go into the new UC system to pump up the child element for working families.
Totally fair as non of the rich get it. Less admin costs and increase the work incentive further.

ukjoel

We have three kids under age of 6 and in similar position to OP.

One radical option available to someone on 60k would be to put 30k into their pension.

£30k if salary sacrificed with some employers would now be £33k.

£30k gross would only be worth about 19k of actual loss.

You could then pick up child tax credits of approx 7k net
You would also pick up child benefits of 2.5k net

So now in real terms you are £9,500 poorer for the year but your pension pot is £33k better off. An instant return of over 330%.

Positives are that such a big chunk will mean retirement a year or two earlier. The negatives are you will have to budget to see the year out with £9500 less month and the got will then nab your winter heating allowance, and by then your state pension as your an easy target.

If you think 60k losing their child benefit is an easy target - wait till they start looking at anyone with a pension pot of over a million.


This is where the other budgetboards on this site are so useful.

The chancellor throws rocks at us and we use them as stepping stones.


I checked these figures on entitled to calculator (based on 3 kids including childcare costs).

princessdon

ukjoel wrote: »

We have three kids under age of 6 and in similar position to OP.

One radical option available to someone on 60k would be to put 30k into their pension.

£30k if salary sacrificed with some employers would now be £33k.

£30k gross would only be worth about 19k of actual loss.

You could then pick up child tax credits of approx 7k net
You would also pick up child benefits of 2.5k net

So now in real terms you are £9,500 poorer for the year but your pension pot is £33k better off. An instant return of over 330%.

Positives are that such a big chunk will mean retirement a year or two earlier. The negatives are you will have to budget to see the year out with £9500 less month and the got will then nab your winter heating allowance, and by then your state pension as your an easy target.

If you think 60k losing their child benefit is an easy target - wait till they start looking at anyone with a pension pot of over a million.


This is where the other budgetboards on this site are so useful.

The chancellor throws rocks at us and we use them as stepping stones.


I checked these figures on entitled to calculator (based on 3 kids including childcare costs).

I have a feeling the Govt predicted this response and in tomorrows mini budget the tax allowance for higher rate and pension conts will be gone!

Just my prediction though and would be a shame for those just over the limit not to be able to take advantage.