child benefit cut

When CTC was first talked about it was based on HRT but they changed it to household income before it was introduced. Hopefully they will do the same this time. I know 44k sounds a lot but depending on where you live in the SE, you possibly need to earn 10k to cover the commute to work. And agree, with three children the CB makes a difference. However a joint income of 78k, the difference is not so much I would have thought, so let's concentrate on that ridiculous anomaly!

CB will be withdrawn for HRT payers in 2013. The tax credit thresholds and rules were changed at the start of this tax year and households with incomes over £42k (or thereabouts) now do not qualify for CTC

I'm confused. I thought CB hasn't been withdrawn, but the £44,000 threshold was for tax credits?

Perry, £44k isn't exactly a huge income nowadays. But I'm not overly bothered about where you draw the line. As long as it's consistent.

It's hard to argue it's 'too difficult to police' when tax credits goes off joint income. I'd have thought it's fairer to just merge CB into tax credits then change the thresholds through that.

The problem with the proposals as they are is that if you earn £1 more than the threshold you lose all your CB. That is whilst your neighbour who both work and can earn nearly double continue to get it.

Take my example. I earn a little bit more than the HRT threshold. OK you can argue I don't NEED it. Fair enough. But then does my friend & her husband 'need it' when they earn about £30k more than me but they will continue to get it?

The thing with taxes is that there are always laws of unintended consequences. Whilst the Tories are extolling the virtues of marriage, we've planned ahead and my OH has got a job already as there's no way we'd keep our head above water once we lose our CB for three kids.

It isn't £80 a month. We have three dcs and our CB is £188 every four weeks and yes we will miss it.

It will still need to be policed though, and more importatnly clawed back through tax the following year if one partner claims and the other earns over. Whatever system is introduced, even the supposed 'simple' one that has been mooted, there will still be a great scope for maladmistration or over-complication.

I think £44k should be it if I'm honest...too difficult to police otherwise to require honestly over a joint income

I know that this isn't a popular answer but it's honestly how I feel about it. If someone brings in £44k in a salary, you are well off enough not to need CB.

The full details aren't known yet but we can all see the dilemma. The classic example of why CB was unfair was that Cherie Blair QC on a salary of £000s got the same £20/week for young Leo as a mother with no income got for her child. They could have opted to augment CTC and remove CB entirely..... my preference, and something I still think will happen over time... but, short term, that would have meant families on >£25k would lose both. They could have made CB dependent on the household income rather than that of the highest wage-earner.... but there may have been accusations that it was a backward step for women who have been taxed separately for many years now. Similar issues surrounding making CB a taxable allowance (effectively a taper).... because then it would go to the higher wage-earner, which is often not the mother.

FWIW I don't think lone parents will get an allowance.

As far as I understand it, it's a all or nothing. There's no taper. So you earn a penny over the HRT band and your CB is gone.

Do we know much in the way of detail yet? Will it be an absolute where if you earn even 1p in the higher rate you lose it all or will it taper off losing £1 for every £2 over the limit you earn like age related tax allowance for pensioners? Or some other way?

If it is an absolute cut off then it seems very damaging as it puts an effective ceiling for many families at a time when they are talking of universal credit to remove this kind of cliff edge. If it is a taper then that seems fairer as no-one will suddenly become worse off as a result of a pay rise or promotion.

At the very least they need to change it so lone parents just over the threshold don't miss out. Isn't it going to be the case where a couple both on £39k can keep their CB while a lone parent on £41k will lose out.

I hope people don't take offence to this as is it an honest question and not criticism.
I barely and most months manage to cope on k23 household income, no benefits apart from tax credits which help pay for childcare but don't cover the full cost. Sometimes I complain, moan, etc but I get on with it and make cuts wen an where necessary.
How on earth can a family on almost double that income complain about losing £80 a month?

Of all the horrendous cuts the government has made, cutting CB for incomes of £44k+ a year is NOT the one that keeps me awake at night.

Whilst it's true that a couple both earning just under the HRT threshold will keep CB, I wonder how many households that's going to apply to in practice? And how many people are going to accept the idea of keeping their wages down or saying no thanks to promotions, just to stay under the threshold? Perks in lieu like laptops or rail-cards will get taxed heavily - HMRC isn't thick. I'm also a little fed up with the tired old whine that people 'aren't rich on £44k a year'.... maybe not, but they're on nearly twice the average household income, they have options and, with the change only coming in in 2013, they have chance to adjust.

there not their.

I seem to remember my DH starting one on this subject when the cuts were first announced. Not sure what happened to it or whether it gets MN backing. Like you we're just in the bracket but as a SAHM it seems unfair that we'll be penalised as my tax allowence is not taken into consideration.

Our catchment school is poor so we've opted to send our DS to an independent school, with our DD starting when child benefit is cut it will hit us hard too.

Given that so many others are really struggling I guess I just feel we have to do our bit and take it on the chin unfortunately. There have been a lot of threads recently where people are in a desperate state with their finances so I don't know how much support their would be.