MSE News: Child benefit cut to hit 1 million next Monday



  • I so agree - anyone on benefits including tax credits with a tv, mobile, sky or holiday needs their benefits reduced :)

    I totally agree!
    No more spending hard - Time for the scrimping!
  • FBabyFBaby Forumite
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    jollybeans wrote: »
    I agree hard work should be rewarded and I nice holidays/houses are nothing to be ashamed of and I'm certainly not saying they should give away their disposable income to the poor. But just not to expect an already over-stretched welfare state to supplement that lifestyle if you don't NEED it. We are in the midst of a global financial crisis and are all feeling the pinch right now. But as you say it's about lifestyle choices and if someone has worked hard to earn a lot of money why would they need to have their wages topped up by the government?

    I really don't think it is about expectation of a top up and I think most are fine in principle with it being cut. What makes it hard to swallow is when a family can work only 24 hours together as a couple, keep on having children and end up with a disposable income not far off from the £50K earning household who gets nothing back yet support the other family in their lifestyle.
  • Its a tax on the South! This proves there is more of a North and South divide than ever. Those that say over £50,000 is a lot does not have anywhere near the same bills to pay as the North. Just to go to work costs my husband £4800pa that isnt taken into account is it? So actually if we take off all our bills our monthly expenditure is far less of someone who claims benefits or is a lower earner.
    No more spending hard - Time for the scrimping!
  • Gaz1971Gaz1971 Forumite
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    Old benefits forms used to have question 1 - Are you working full time?

    It then said 'If you answered yes to question 1, dont bother filling in the form as you dont qualify for benefits'.

    In other words, learn to live within your means, have whats needed, not the things you want.
  • sammyjammysammyjammy Forumite
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    flight747 wrote: »
    Everyones know benefits is more money than hard worker as I used to work before and the salary is terrible only take home after tax is £11,745 and pay all the bills, rent, council tax, no holiday and got nothing left. No saving. Now I earn £21,505 in benefits and don't have to pay council tax or rent. And enjoyed my holiday four times a year.

    So, it proved benefits are better than in work.

    Enjoy it whilst you can.
    "You've been reading SOS when it's just your clock reading 5:05 "
  • movilogomovilogo Forumite
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    Martin advised that even if you earn over £60k, it is still worth claiming CB because

    1. You can earn interest on that amount even if you have to return it later.
    2. You never know if you lose your job or your income falls. In that case you keep all or part of CB anyway.
    Happiness is buying an item and then not checking its price after a month to discover it was reduced further.
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    Hopefully this will teach the parent/parents to live within their means.
  • zagfles wrote: »
    Do you know why it wasn't pursued? Would it stand up in law to count the same income twice?

    Indeed, but the motivation could be there for a small contribution just as much as for large. Also if HMRC have never used the notional income rule for pension conts before, do you think they'd bother starting now, with tax credits in their death throes?

    The main part of the case was about a separate compliance issue, and was successfully argued.

    I don't think they would be counting the same income twice.

    They would essentially be saying that you have given up X pounds of your income to increase your entitlement to tax credits and so under the notional income rules they treat you as having that income (so going down in the calc as notional income). They would then still have to deduct the pension contribution amount in full. But I don't see how that counts the income twice. Have I missed something? It works in the same way as any notional income would. What you did with the income you gave up becomes somewhat irrelevant to the calculation - whatever amount was given up would go down as notional income (presuming of course HMRC could show you had deprived yourself to gain extra tax credits)

    Agreed as well that it probably isn't worth their effort this close to UC.

  • Hopefully this will teach the parent/parents to live within their means.

    I'm not sure it's going to affect people -for me it means £2000 a year less to charity or maybe I will put say £2k per month into pension so the government pays me £800 a month in the pension AND I keep cb. Plus as I have to do a self assessment I'm going to claim back working from home and all the charitable deductions.
  • Will the tax payers get any kind of concession at all for paying into the pot for years and years ? Nothing. Gotta pay for everything. But if you are benefits you get exempted from absolutely everything. Proper working people have less or no disposable cash in hand after paying for essentials where as the benefits people are out on the high street with their Iphones and Ipads.
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