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MNHQ

URGENT - need your views on Budget for Radio 5 interview at 11pm tonight

37 replies

Carriemumsnet · 16/03/2005 20:10

We've been asked to comment on the effect of the budget on Parents for Radio 5 tonight and they're particularly interested in your views - so if you've anything good or bad to say, any anecdotes as to how it will affect you, anything witty, pithy, helpful at all, please post it here!

In case the whole thing's passed you by (you're not alone) they sent through the main headlines that they want to talk about so I've pasted them below - warning this is a bit long!

Their question is :"Chancellor Gordon Brown has stressed that his ninth Budget puts "hard-working families first", helps pensioners and young homebuyers. ... But how will the budget changes benefit parents?

The main points on familes seem to relate to children. The most eye catching measure is that payments for children under the child tax credit system will rise each year in line with earnings (there were previously tied to inflation/prices and therefore had been rising far more slowly) and over the coming three years by a total of 13 per cent.

Does this mean anything to any of you? I'm not even sure who gets tax credit ie how much you need to be earning/not earning and how it's paid. There's been some talk I know about it being quite complicated to claim - anyone any experience? Will this increase affect any mumsnetters?

The government is also considering whether or not to extend Child Trust Fund payments (due to come into effect this April) into primary and secondary school years. I think this means that those with children at school now might also get the one off payment of £250 to invest. Would you welcome this - or do you think the money would be better spent on other things to help families.

They've raised the Stamp Duty threshold from 60,000 to 120,000 - will that help you?

The Inheritance Tax threshold is also raised from 272,000 to 275,000 (gee whizz) and set to rise to £300.000 in the next three years. I think this is quite interesting. I assumed inheritance tax was for the super rich, but if your folks live in London, even a modest terrace or flat somewhere central it will be worth more than this. Not sure if you just pay tax on the bit over £300,000 - but will this affect you, make you have a conversation with your folks about handing the money over now?

Child benefit has gone up by some miniscule amount - by 50p to £17 a week for the first child and up 35p to £11.40 for other children - does that bother you, or do you just see that as a nice little extra you don't really need? When I was little child benefit was a really important part of our income

Mr Brown promised to boost the primary schools re-building programme by £650m by 2010.
What does that mean? Mending new roofs or new schools?

Help promised for early learning in every area for all children who need it - again question what that means, sounds like politic-speech. Would you like more early learning provision (or would you quite like the option for them to stay at home longer - and maybe you get something for staying there with them?)

He announced a five-year, £1.5bn programme to renovate and renew further education colleges and Investment in the three-year programme for IT capital in schools will be raised to £1.67 billion.

All these figures sound good, but tricky to know what they mean in real terms - will it help you children?

Doesn't seem to be anything on tax relief on childcare - would you welcome that?

Anything else that's affected you/ you'd like to see.

Sorry that was so long. All comments welcome

Thanks in advance

OP posts:
cloudy · 16/03/2005 20:31

Rise in stamp duty threshold will just drive house prices up, won't make them any more affordable.

Paid for Nursery places for 2yrs old is daft, most 2 yrs old don't want to leave mum yet.

Child tax credit -- most valuable thing would have been correctly processing existing claims (ours is so bodged, after at least 30 (no, I am not exagerating) letters & phone calls I gave up, I refuse to speak to the Revenue about it any more).

More investment in schools sounds wonderful, though.

chatee · 16/03/2005 20:30

Hi carrie,
i'd like to know how they could improve or the way it is decided and how they fund a child with special/additional needs in mainstream schools...
how they could offer any financial incentives[possibly to employers to be more aware of the difficulties in raising a disabled child and to make them more flexible] or a parent who has to give up a job in order for their disabled child to be cared for as they wish-egto be able to take children to hospital appointments,to have regular physio appointments, to be able to access regular childcare just like normal families
sorry if it's a little muddled ds keeps stirring!
i know this seems very s/n biased but life changes so much with a s/n child and services and help are not always forthcoming and clear.....THANK GOODNESS FOR MUMSNET.

MNHQ
Carriemumsnet · 16/03/2005 20:29

wow that was quick - keep it coming!

OP posts:
KristinaM · 16/03/2005 20:29

Extra maternity pay = a very good thing, esp for families on lower incomes, for whom that £100 a week may allow mums to stay at home for longer ( if they want!)

Stamp duties changes = very good thing for first time buyers/ single parents/ young families outside London. Might even peg house prices a little at this end of the market.

No tax relief on childcare = a very bad thing. Costs are exhorbitant, esp if you have a baby and toddler. Many mums with who work, even in professional jobs in the health service or local government can't afford to go back even if they want to!! Given shortages of nurses, teachers etc this is a real problem for labour market

ionesmum · 16/03/2005 20:23

'Early learning for all' sounds like compulsory education for three year olds by the back door to me.

Nothing to help SAHMs or those who would like to be. What about tax breaks so parents can stay at home for their children's early years?

Stamp duty - does nothing to help families who need bigger houses but live in the South-East.

Inheritance tax - ditto.

Tax credits - never claimed as it all sounds too complicated and a waste of time as the Revenue bodged so many claims, even though dh's income is the national average. Would be a start if this could be done automatically through the payroll.

Tinker · 16/03/2005 20:22

Oh, carrie, you sound so innocent not knowng about tax credits . Not seen the finer details but any rises = good and any redistribution of wealth = good.

Stamp duty rise good for me - my house is borderline that value. Did hear some idiot on BBC this pm saying it will only affect obscure places. Er, what like, lots of first time buyers terraced houses in North of England?

Disappointed he's seemed to pander to Inheritance Tax hysteria in theory but actually hasn't really - 94% this year won't pay it. Was 95% last year. An unpopular tax based on I don't want to pay it. Well, where else is he going to raise this revenue from? So, glad he hasn't really pandered is my garbled view.

CountessDracula · 16/03/2005 20:18

You could point out that the BBC website got all us mums excited by saying that Child Benefit was going up to £63 a WEEK in it's summary!

zubb · 16/03/2005 20:18

doesn't affect us at all - but I don't like the statement 'puts hard working families first' - what are we then?!

tortoiseshell · 16/03/2005 20:18

I think the Child Trust fund is a red herring - you are tied where to invest it, so you inevitably won't get the best interest rate on it. And therefore, people won't add to it as the government want them to, because if they want to save for the child, they'll do it in the best fund available.

I strongly think that child care should be tax deductible, pure and simple. It is not fair that when I go to work, 95% of my salary goes on childcare, especially since the government WANT me to work. If I could claim it off my tax it would be FAR more worthwhile to work, and the government do actually want us to have children!

Enid · 16/03/2005 20:16

None of it affects me or my family at all. Would have liked to see more tax on cigarettes though.

Don't like the Child Fund anyway, would much rather the money was ploughed into schools. Surely a good education gives every child a head start in life?

helsi · 16/03/2005 20:15

I was really hoping to hear something on improvemnts to do with helping parents work and chidcare costs etc. Though would have been a biggie - a bit disappointed really.
Stamp duty has no effect on me - not buying a house & the next one I buy will prob be over that amount.
Early learning? - not sure about that - not much detail on it. Needs a bit more meat on the bones I think.
ChB increase - that's just pants - what can you get for an extra 50p per week?

Bonkerz · 16/03/2005 20:14

Personnally the budget wont mean anything to us as a family, we wont be better off as IR have mucked up our tax credits anyway and havent recieved anything for a year!(Our income is less than £25,000 pa)
We dont drink or smoke and dont pay childcare. I think its good about the extra money for primary schools but what about tax relief for us hardworking parents on lower incomes??