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High income earner tax - child benefit

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Comments

  • sheramber said:
    Was there a conclusion to the debate? I starting reading the waffle and fell asleep.
    Yep - they agreed that they had considered the charge. 
  • Strummer22
    Strummer22 Posts: 676 Forumite
    Ninth Anniversary 500 Posts Name Dropper Combo Breaker
    edited 22 January 2024 at 2:51PM
    sheramber said:
    Was there a conclusion to the debate? I starting reading the waffle and fell asleep.
    Yep - they agreed that they had considered the charge. 

    = all talk and no action.

    I would expect this to be looked at in the next parliament - especially if Labour is in power. 
  • Jeremy535897
    Jeremy535897 Posts: 10,653 Forumite
    10,000 Posts Fourth Anniversary Photogenic Name Dropper
    I wouldn't hold your breath.
  • Jimeji
    Jimeji Posts: 58 Forumite
    Fourth Anniversary 10 Posts Name Dropper
    This is the key point:

    "I have several constituents who agree with the hon. Member—indeed, this goes to the heart of why the charge is seen as unfair. One of my constituents, Andrew Malloy, summed it up when he asked why a family with one parent earning £50,100 could be hit with a tax payback, while a family with two parents earning over £49,000 each was not affected. He has a valid point: a household with a total income of over £99,000 can still receive its full entitlement to child benefit. Shaun Boyle also struggles to understand why that is the rule, as households earning much more than his are entitled to benefits that his household is not. After deliberations, he concludes that

    “this cannot be a fair system.”

    From my questioning and research, I am inclined to agree with him entirely."


    Can anyone explain the reasoning behind this?

  • Jimeji
    Jimeji Posts: 58 Forumite
    Fourth Anniversary 10 Posts Name Dropper
    I find it quite odd that someone earning £13,000 is paying tax and might be entitled to no benefits, and someone earning £50,000 might be getting benefits on which they are just about to be asked to pay tax.
    Why? If the person earning £13,000 had children then they would be entitled to benefits.
  • Jimeji said:
    This is the key point:

    "I have several constituents who agree with the hon. Member—indeed, this goes to the heart of why the charge is seen as unfair. One of my constituents, Andrew Malloy, summed it up when he asked why a family with one parent earning £50,100 could be hit with a tax payback, while a family with two parents earning over £49,000 each was not affected. He has a valid point: a household with a total income of over £99,000 can still receive its full entitlement to child benefit. Shaun Boyle also struggles to understand why that is the rule, as households earning much more than his are entitled to benefits that his household is not. After deliberations, he concludes that

    “this cannot be a fair system.”

    From my questioning and research, I am inclined to agree with him entirely."


    Can anyone explain the reasoning behind this?

    At the end of the day the legislation is what it is.  Labour may change it, they may not.

    It is presumably a money spinner for the government and whoever is in power will be well aware of that.

    And someone individually earning £99,000 could also keep 100% of the Child Benefit if they wished.  Just make sufficient RAS pension contributions.  Even simpler next year when the annual Allowance increases to £60k.
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