What's the Future of Child Benefit?

cakeforbrains

Have you got any thoughts on what this, or any subsequent government, might seek to do to Child Benefit? What do you think they should do?

Currently, households with children are paid at a rate of £20.70 per week for their first child and £13.70 per week for each subsequent child. There is no limit to the amount of children a household can receive Child Benefit for, although there is a benefit cap which might affect this in practice for low income families.

In 2013 Child Benefit became means tested for the first time, meaning that households who have one person earning £50,000pa or more were obliged to repay the benefit at a rate of 1% per £100 earned over £50k. So, if their earnings reach £60kpa they are to repay 100% of the benefit (or not claim it in the first place). This is based on any single earner in the household, so a couple with children could earn £49,999pa each and still keep all their Child Benefit.

The origins of the government providing money for children can be traced back to the early 20th century when an income tax allowance was made for workers who had children in the household. This mainly benefited the waged middle classes who earned enough to pay income tax. In 1945, following the Beveridge Report, the Family Allowances Act was passed, which saw actual money being given to all families with children, as opposed to tax breaks.

Child Benefit as we know it was introduced in 1977, notwithstanding a little tinkering on which rates apply to which child. Historically there were slightly higher rates for lone parents, but this ended in 2007.

So what do you think is going to happen, or should happen? Should the means testing be stronger, perhaps on an income of less than £50k. Or should it be based on a household income to be more fair to single parents or families with one high earner and one non-earner? Should they apply the upcoming Tax Credit two-child cap to Child Benefit or continue paying for all children born? Should we go back to a tax allowance for children so that only working families benefit?

Or, is it important to maintain Child Benefit, usually paid to the mother, so that women in financially power-imbalanced relationships can still access money for their children?

I'm just really interested in people's opinions.

Dan:_4

Keep it. I enjoy getting £137 every 4 weeks for nothing. Well, not me but my wife.

michaels

It should be folded into tax credits, non means test benefits are an anachronism.

Carl31

it will be phased out eventually, it has to be gradual for people to get used to it

Realistically, the effect will be that a few families spend a bit less each month on food or whatever, and retailers will adjust over time to the change in spending habits

Mallotum_X

Shouldnt exist any more, just absorb into general benefits.

Loughton_Monkey

Having a child is a matter of choice. As a taxpayer, I would already accept that I have to contribute to free health care (for child and mother) and free basic education for that child. But I draw the line at that and dislike the concept of paying people to have children. Over the last decade or two, the obscene amounts of child tax credit has become ridiculous.

It's about time we encouraged people to work out the costs of parenthood (not difficult) and make their own provision in the same way we have to for cars and other 'stuff'.

What about unplanned/unwanted children that parents cannot afford? Well China has the answer for that:

http://www.dailymail.co.uk/news/article-2516076/Chinese-build-baby-box-parents-dump-unwanted-newborn-children.html

Chinese authorities have built a 'baby abandonment' building where parents can anonymously leave their unwanted children......

A bit like the bottle and clothing banks down my local Sainsbury's car park. We probably have room for one of these as well.

I believe the role of any government is primarily to provide basic necessities and efficiencies, like infrastructure, defense, a legal system, basic health & education, and a modicum of 'safety net' benefits. It is not (in my view) there to re-distribute wealth, except in the minority of cases in which individuals are unable to create their own wealth through no fault of their own.

purch

michaels wrote: »

It should be folded into tax credits, non means test benefits are an anachronism.

It should be folded into Universal Credit.


I agree, the day's of non means tested benefits should be long gone.

TheBlueHorse

I don't care what they do with it, as long as it is fair. the current system is a DISGRACE. how dare they say "household income" when one person earns £60k and gets nothing, yet two people on a combined £100,000 get the full amount.


People's tax is SEPARATE and it should remain that way. How dare they tax a man's salary for a benefit his wife gets paid. Yet, the man does not benefit from the wife's tax free allowance or lower rate.


They should have just reduced it to two kids max or stopped it at 12 (when kid is in secondary school and other parent can go back to work full time more easily).


OR


Just scrap it altogether for everyone.

Sapphire

At the most, limit it to two children only. That's how it used to be until quite recently.

However, I would be in favour of losing it altogether. Having children is a lifestyle choice, and I don't see why taxpayers (some of whom earn very little and do not have children themselves) should have to pay for people to breed. If you aren't prepared to afford to bring up children, don't have them.

CLAPTON

non means tested benefits require very high marginal rates of deduction and so discourage enterprise and people trying to improve their income.

kathrynha

It's nice to receive just over £80 a month. It's the only benefit we get, and the tax we pay for outweighs what we get back.


Think it should be limited to 2 children, and they need to sort out the 1/2 earner discrepancy at the top.


Can't see it lasting for ever. Reckon the earning level to get it will drop more over the years.


Maybe a child element in the tax free allowance would be better as it would encourage people in to work more rather than receiving money for nothing.

Personally I would like to see more in-work benefits move to increase tax free allowances, as it seems like a long winded way of doing stuff to charge someone tax, and give some back to them, with all the admin and paperwork related to that.