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If I'd known then what I know now...I wish I'd saved Child Benefit!!!

(26 Posts)
Ponders Sun 14-Aug-11 13:57:52

Youngest child is 18 now so CB stops forever from 5th Sept. It always got swallowed up & frittered in general outgoings; if I'd saved it, the amount would have been thousands now, just in time for university.

Of course there were times when we really needed it but even so...

CogitoErgoSometimes Sun 14-Aug-11 17:56:06

You're not wrong. Having managed to put aside a little each month into a CTF (pre the voucher thing) I've seen how a relatively small regular deposit can mount up. But I suppose the whole point of CB was that it was to be spent on the kids.... support mothers etc. If everyone had it 'spare' then it probably wouldn't be going to the right people.

Gonzo33 Mon 15-Aug-11 15:11:42

I agree, and in these times of hardship it is needed ever more!

qo Mon 15-Aug-11 15:13:14

I've just been awarded CB for my son til he's 20, as he's still in FT education - it doesn't necassarily stop at 18.

Ponders Mon 15-Aug-11 15:55:54

that doesn't apply to university though, does it, qo?

or does it....? I've always assumed not, although I know it does say they are eligible up to 20 "in full-time education", but I thought that didn't mean higher education?

nickelbabe Mon 15-Aug-11 15:57:19

yes, it does apply to university.

Ponders Mon 15-Aug-11 15:58:59


oh what good news! grin

(older DC all had working gap years before uni so it stopped anyway so I've just been assuming DS2's would too. I shall ring them up immediately!)

saggarmakersbottomknocker Mon 15-Aug-11 16:01:28

Sorry but it doesn't apply to students at university.

ExitPursuedByATroll Mon 15-Aug-11 16:01:49

We put our CB into a Bank Account in DDs name. She is 11 now and already has over 12,000 in there (birthday money etc used to go in there as well - now she spends it on clothes). I am hoping it will go some way towards her fees if she goes to Uni. She thinks it is for her to spend as and when she watns.

Ponders Mon 15-Aug-11 16:09:29

oh, no, it doesn't - you're right, Saggar

inf here for others sad

You can carry on getting Child Benefit for your child up until their 20th birthday, if they're in education or training that counts for Child Benefit. Education or training counts for Child Benefit as long as it's either of the following:
full-time, 'non-advanced' education (for example 'A' levels)
'approved' training
Your child needs to have started, enrolled or been accepted for one of these types of courses before the age of 19.
You can't get Child Benefit if your child is doing:
higher education, such as a course at university level
education provided by an employer
education provided through any office they hold - for example if your child has an official role such as scout leader or councillor, and the education is provided as part of that role
training that is part of a job contract

oh well smile

Wormshuffler Mon 15-Aug-11 16:15:50

That is a really good idea, I think I will do this, thing is though, if you have more than one child it gets paid as a lump sum, so would have to come in to our account then go out again?

nickelbabe Mon 15-Aug-11 16:16:37

they've changed it then. sad
sorry Ponders - my info is out of date. blush

OiMissus Mon 15-Aug-11 16:21:01

Due our first child in December - thanks for the very good idea to set it aside in a savings account to go towards uni/other. smile

Ponders Mon 15-Aug-11 16:27:12

never mind, nickelbabe - you added a frisson of excitement to my afternoon

wormshuffler, yes, they pay it all together so you'd have to share it out; but benefit for 1st child is more than for subsequent children, so you can divide it equally then, which is fairer

you're welcome, OiMissus


nickelbabe Mon 15-Aug-11 16:33:25

glad to be of service grin

Wormshuffler Mon 15-Aug-11 16:59:38

Just worked it out it's £16.25 per week add that up for 18 years and it equals 15 grand! definately worth doing! Thanks for the suggestion OP

lostinindia Mon 15-Aug-11 17:30:34

This is what I've done. Been putting it straight into ISAs. I've got separate accounts for both children which hold the trust fund that the Labour gov gave out and any birthday money they received. The children can have access to these accounts when they turn 16 but I'm not telling them about the ISAs as I don't want them to think there is this pile of money waiting for them. I want a handle on how the money is spent and hope it will go towards Uni, a house or maybe a little towards a backpacking trip.

activate Mon 15-Aug-11 17:31:49

child benefit stops in 2013 for any household earning over 44K (I think)

Ponders Mon 15-Aug-11 21:32:49

oh lord, yes, I had forgotten about that, activate sad

it's not household income though, it's that really unfair thing where it stops if one person earns just over £44K or whatever the HRT threshold is (but if there are 2 earners both just below the threshold, they'll still get it angry)

but for anybody who will be in the former position it's important to continue to claim CB, even though it will be reclaimed in tax, because then (I believe...) the carer will get whatever home responsibility credits are called now - which count towards pension in the years when when you're not working

I'll try to find a link

Ponders Mon 15-Aug-11 21:38:46

see Carers' Credits here - you get them if you are in receipt of CB for a child under 12 (it doesn't say if this still applies after that new restriction kicks in)

OiMissus Tue 16-Aug-11 07:36:05

That's not fair!!! I pay loads of tax and never see any benefit from it! It would be nice to get something back for once... CB was it. Grrrr! If they take income into account for CB, they should do it for maternity pay too - and give the main income earner more than £128 a week! Grrrrr! Ok, rant over. I'll go and get a coffee and quieten down.

NewlyConvertedFordLover Tue 16-Aug-11 07:59:25

Unfortunately I've always needed to use child benefit in my budget for living expenses.

ExitPursuedByATroll Tue 16-Aug-11 11:06:37

It is not Child Benefit that is being ceased - isn't it Children's Tax Credit for households with an income over £44,000. Child Benefit will continue. I think.

CogitoErgoSometimes Tue 16-Aug-11 11:23:36

CB is being withdrawn from 2013 for families where one parent's income is in the HRT threshold. CTC was withdrawn from earlier this year. Judging by the number of people on this thread who didn't need the money, you can see why those decisions have been made.

LawrieMarlow Tue 16-Aug-11 11:23:51

Child Benefit will stop where there is a Higher rate tax payer. Well it was said that it will stop from 2013 but not exactly when or exactly how. There have been rumours it will be paid but then the Higher Rate tax payer would need to declare it. And as Ponders says if you have two people earning just under the HR limit they would still get it despite having a much larger overall income. Remember also that the band for HR tax is going to go down as well (as the personal allowance goes up).

Child Tax credits have already stopped for incomes over around £40k (depends on circumstances such as number of children, whether any have disabilities so there is no fixed cut off point).

Nothing was mentioned in the most recent budget about CB - it was in the first ConDem budget in 2010 but not in this one, so who knows what will happen.

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