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Child benefit changes - what do you think?

(1000 Posts)
KateMumsnet (MNHQ) Thu 25-Oct-12 13:50:35

Next week, the Inland Revenue will write to 1.2m families about upcoming changes to child benefit eligibility. The changes mean that from next January, single-income families earning more than £50,000 per year will no longer be eligible for the full amount (currently worth £1,055 for the first child) - and those earning over £60K will no longer receive it at all.

The changes are controversial. Dual-income families who both earn just below the 50K cut-off - who have, in other words, a family-income of just under £100K per year - will continue to receive the full amount, leading to criticism that the changes penalise both stay-at-home mothers and single parents. Accountants are warning that new partners of divorced parents could also lose out. And the entire process is so complicated - with families forced to fill out complex self-assessment forms for the first time - that the Inland Revenue has reportedly postponed sending out the letters because they can't find a form of words that families will be able to understand.

What do you think? Will you be affected by the changes, and what will it mean for your family? Are stay-at-home mothers being unfairly targeted - or is staying at home a luxury which shouldn't be subsidised by the taxpayer? Should child benefit be universal - or should it be available only to families who are really struggling? Let us know what you think here on the thread, and don't forget to post your URLs if you blog on this subject - we'll be tweeting them over the next few days.

ihategeorgeosborne Mon 07-Jan-13 22:21:05

sweetkitty, I have a friend like that. She has 4dc and they are very well off. Her dh has his own business. They seriously go on holiday abroad every school holiday. She was telling me the other day that they will be able to hang onto their CB with some clever accounting. This is going to send me to an early grave I tell ya!

LiveItUp Mon 07-Jan-13 22:23:49

Thanks Polka. Common sense really hasn't touched the sides on this one. As people say, it will help no-one and just encourage tax avoidance, so yes, I can see, they will be massively down on tax-take too.

OscarPistoriusBitontheside Mon 07-Jan-13 22:24:44

I am using this as my safe place to vent, but apparently I am a greedy fucker for claiming cb. 50k is a massive amount for 4 people to live on, they don't appreciate that DH worked his arse off to get his qualifications, whilst he worked full time, that I was the one who dropped back to support him. Nope, apparently we are just rich by luck!

Rant, rant, rant. This is why this policy will never change! It gives those on less who feel entitled to more a good stick to beat us with. I have never begrudged DH taxes being spent on supporting others,and god knows he pays a fortune in them, but it's ok to accuse us of being greedy. angry

OscarPistoriusBitontheside Mon 07-Jan-13 22:26:13

I haven't blogged, but I have had my points printed in the national press, so I can at least say I stood up for my views. I have also tweeted my mp, Cameron, et al.

Savannahgirl Mon 07-Jan-13 22:28:03

I too have a well off friend whose DH works for himself. She has said that they will be doing exactly the same thing :Split the incomes to below the threshold, employ some creative accounting and hey presto! she keeps all £2000+ of her CB for 3 DC's

ihategeorgeosborne Mon 07-Jan-13 22:31:55

I can honestly say that I don't recollect ever feeling so cross and angry for so long about anything else, ever, in my life. That might sound shallow, but most shitty things I just shrug off and in time I adjust to them or things work out for the best in the end. I can't ever see me shrugging this off. Every time I see a family out and about, I will wonder if they get CB. Every time, people stare at me and my kids when we're out and about, particularly if they are naughty or noisy, I will want to shout "we don't get CB you know, we pay for ourselves". This might sound completely mad, but I can't help the way I feel. It has made me bitter and resentful to be honest and I'm not sure I like the person I am turning into.

sweetkitty Mon 07-Jan-13 22:37:57

It's just over £3000 a year for 4DCs, that's £242 every 4 weeks. That equates to a loss of about 5K pre tax, wonder if DP will get a 5K pay rise this year???

We are not rich, I was doing the Tesco online shop tonight and put stuff back so to speak, we can't afford a birthday meal out for DD2 this month, we've never had a holiday abroad since we had DC, we wear Asda clothes but apparently it's all our own faults for earning too much and having 4DC we can't afford.

If we both earned 50K each we would pay less tax and keep child benefit, oh it pisses me off so much.

ihategeorgeosborne Mon 07-Jan-13 22:38:50

Also, think about the amount of money you're going to lose over a life time. It's sickening. I think I calculated it at about 50k for our family.

sweetkitty Mon 07-Jan-13 22:39:39

Oh and we're Scottish, no one up here votes Tory so we can't even protest by not voting Tory next election

Savannahgirl Mon 07-Jan-13 22:41:06

It's making me into a grumpy old mare too ihate sad

Headinbook Mon 07-Jan-13 22:42:39

My terror now is that entitlement to Child Benefit will become a determinant for other things. What price free nursery places now?

We already pay more tax & NI as a household than 2 earners bringing in the same gross wages, yet we are sitting ducks because we can't fiddle our finances.

Headinbook Mon 07-Jan-13 22:44:43

(Ok, sorry, but am relishing the chance to wallow briefly)

Don't like that it is making me so grumpy, either; not that I am fighting a strong disinclination to keep up charitable giving & volunteering (irrational, but still...)

Savannahgirl Mon 07-Jan-13 22:48:32

headinbook it makes you wonder what else they will tell us we are no longer allowed to have such as free prescriptions, dental care and NHS care for our kids.
They are already giving them a debt of £45K to start off their working lives if they dare to go to uni

ihategeorgeosborne Mon 07-Jan-13 22:50:10

I am waiting for them to say that we will not be entitled to the 15 hours of nursery care when dc 3 turns 3. I bet they do that to us, the bastards angry

Headinbook Mon 07-Jan-13 22:53:15

savannah exactly. Part of me thinks I am being dramatic, but the other part wouldn't put it past them. I gave up a really good career before DC was born, because it wasn't family-friendly, and we decided as a family to promote DH's career while I did the domestic side. We knew it would be a sacrifice, but not like this & I resent it like mad. If they cut the nursery places, DC3 will be at home till he's 5.

ihategeorgeosborne Mon 07-Jan-13 22:53:51

I have thought that too Savannah and Headin. I wouldn't put it passed them not to say that children from "wealthy" families will no longer be entitled to prescriptions, dentistry, etc. There'll come a point when it really isn't worth earning 50k at all. I guess society will collapse at that point. Then what happens is anyone's guess. Civil war anyone?? This might sound melodramatic, but I don't think we are far from the tipping point now.

Savannahgirl Mon 07-Jan-13 23:00:33

Yes I know ihate and head - for a Government who is so keen for us to believe that we are all in this together they are doing a very good job of dividing us up into different camps!

OscarPistoriusBitontheside Mon 07-Jan-13 23:08:18

Also, sorry I'm off on one now, cb shouldn't be used to pay has bills in rich people's houses. Stop me before I say something i regret!

Headinbook Mon 07-Jan-13 23:09:07

Quick Google and I wish I hadn't. Opening salvo? This will be in th March budget, or I eat my hat.

freakazoidroid Mon 07-Jan-13 23:10:21

come on mumsnet! Let's try and do something to get our voices heard !!!

freakazoidroid Mon 07-Jan-13 23:11:39

What can we do????? Let's do something

ihategeorgeosborne Mon 07-Jan-13 23:25:23

They know people are mightily pissed off. I just found this in the telegraph:

Not sure they give a shit though!

PolkadotCircus Mon 07-Jan-13 23:39:38

Great their married tax allowance seems to be their answer(even though it's widely reported that more and more couples aren't married).

22 years happily unmarried here,I don't want to get married because wallpaper boy tells me to I want my CB.<hard stare>

RuskinsRegret Mon 07-Jan-13 23:42:06

A technical but rather crucial question: does anyone know whether childcare vouchers are included in your "adjusted net income".

The HMRC website only mentions deductions for pension contributions and gift aid donations to arrive at the adjusted net figure. Would salary sacrifice for childcare vouchers affect this?

Victoriamadden Mon 07-Jan-13 23:49:06

Xenia can you please stop referring to us single unemployed mothers as the poor.

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