What's the Future of Child Benefit?

Mummyisbeauty

michaels wrote: »

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

Only if they close the pension loophole first.

To be honest I think it should stop at 2 children. We have one and earn a small amount but above the threshold for any means tested benefits.
Personally I can't see the merit in awarding it to a person not giving anything to the country and having 6 children because the tax payer pays yet taking it from a couple earning 25k between them who have one child because they cannot afford more than one.
Makes no sense.

[Deleted User]

What happens in my house:
1. Child benefit goes into a join account
2. Wife spends it
3. I tell wife to stop spending it
4. Do tax return, suddenly have £1000 bill to pay and nothing left in the account to pay it with.
5. Slightly screwed

It's hideously annoying. I'd rather we just didn't get any child benefit at all - being in the £50k-£60k salary bracket drives me nuts. Living where I do, it's hardly a big salary either (only £10k over my towns 'average' full-time salary)

Out,_Vile_Jelly

Its origins were noble- allowing mothers to be able to feed children if the father was a !!!!less alcoholic. Mostly an anachronism now. I'd rather see more support for working parents and full time carers (by carer I mean those looking after the disabled, not housewives).

wotsthat

ringo_24601 wrote: »

What happens in my house:
1. Child benefit goes into a join account
2. Wife spends it
3. I tell wife to stop spending it
4. Do tax return, suddenly have £1000 bill to pay and nothing left in the account to pay it with.
5. Slightly screwed

It's hideously annoying. I'd rather we just didn't get any child benefit at all - being in the £50k-£60k salary bracket drives me nuts. Living where I do, it's hardly a big salary either (only £10k over my towns 'average' full-time salary)

I grovelled to max out the pension and then got two unexpected bonuses which meant I had to pay back the child benefit out of my £8k tax rebate :mad:

cakeforbrains

Out,_Vile_Jelly wrote: »

Its origins were noble- allowing mothers to be able to feed children if the father was a !!!!less alcoholic. Mostly an anachronism now. I'd rather see more support for working parents and full time carers (by carer I mean those looking after the disabled, not housewives).

I find this element of its history really interesting. I wonder to what extent that is an anachronism. I'd be willing to bet that there are still a lot of imbalanced relationships like this (with or without the alcoholism) but it would be interesting to know how this has changed over the years.

cakeforbrains

TheBlueHorse wrote: »

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.

Especially given that the new marriage allowance isn't extended to higher rate tax payers.

michaels

I wonder how much tax is lost from people diverting income above 50k to pension compared to how much is saved in child benefit?

purch

michaels wrote: »

I wonder how much tax is lost from people diverting income above 50k to pension compared to how much is saved in child benefit?

Whatever the actual amount is, it just shows that having a ever more complicated Tax and Benefit system will always allow for loopholes that can be legitimately utilised, but that were far from the intention.

They need to learn to stop meddling and keep things simple, but they won't because they are morons.

TheBlueHorse

I don't know why a person without children can't have a tax free allowance of say, £10k and one with children get £11k tax free allowance? Isn't that easier to run? No tax credits, nothing due back. Just keep slightly more of your own money thanks.


Maybe even increase the allowance £500 per child up to a max of 3 kids. You can choose if it goes to the husband or wife.

Jon_B_2

The current system is poor.

You either abolish it altogether

Or you do away with the earnings cap. It is fundamentally wrong that somebody who earns £60k a year and by default pays substantially more into the tax pot than somebody on £10k a year does not get the child benefit. Imagine if they did the same with the NHS? Sorry, anybody earning over £60k has to pay for their healthcare?!

I don't earn even £50k, so I am not bitter.

I'd rather child benefit went into a high interest trust fund for the benefit of the individual children only.

In my household the £82.80 goes into my account and I then transfer it into a kids savings account in my daughters name accruing 3% interest annually.