Should child benefit change, and how?

[MidnightPatrol]

Martin Lewis talking about the unfairness of how child benefit is applied today. Millions more are being caught up by its removal.

Key points:

• A single income household with a £60k income is eligible for £0, while a dual income household earning up to £100k gets 100%.
• The earnings threshold has not changed since 2013

Should this change, and if it does change what would be 'fair' instead?

e.g.

• Should the arbitrary cut-off be higher?
• Should it be universal?
• Should it be based on household rather than single income?

I'd make it universal again.

However I wouldn't give NI credits until children are 16 or 18. There is no reason why most parents cannot work when their children reach secondary age.

Those who cannot work because they are disabled or have other caring responsibilities should of course be entitled to credits, which I believe they already are.

Do you know how they means test for student loans? That’s household income. Step parents wages get taken into account while ExH on considerably more money is ignored.

When I had my 3rd 5 months ago I was told no you can't claim for a 3rd child after April 2017

Sorry I did press reply to this. Didn't work 🤣

Then you were misinformed. You can claim CB for all children. It’s other benefits you can only claim for 2.

@BiffandChip1 you were told wrong.
From gov.uk website...

Surely being a single earner household (in a non single household) is a choice?

Those families save massively on childcare so no need for extra money.

Exceptions like disabilities could be catered for surely? And then you would need to make a different arrangement for single parents who are often the real losers.

Personally I would scrap altogether and put it all into subsidised childcare for those working. And then also boost significantly the help available for families with disabled children who genuinely cannot work.

Our household income is way below that anyway, but no, if my partners income was 60k but mine (as the claimant) is below 50k then I can still claim.

It's still universal here in Ireland that's never changed thankfully. I do wonder though how much longer that will last

It should go back to being universal.

If that can’t happen, then it should be based on household income. Not because of the 2 parents with 1 being a SAHP argument, because they will have lower childcare costs than a 2 working parent household is likely to have so don’t really miss out, but because of single parents being penalised massively by the current system.

And if it has to be means tested, the threshold should be raised in line with inflation since the cap was introduced. 50,000 in 2013 is worth over 67000 now.

If benefits for pensioners have to be universal because that’s the most efficient way to administer them, there’s no argument for saying family benefits shouldn’t be the same.

Personally say scrap it and have subsidised childcare.

Or if its back to universal for all children then council tax needs to change so its based on per adult household since single people with no children get naff all help yet keep paying more taxes to subsidise families (since no budget has ever introduced a change that solely benefits that bracket of people) and no 25% off isn't good enough nor is being at the bottom of the list for help if you lost your job and only source of income only to find you lose your home and no chance of getting council help because families come first. So that's the trade off.

I can add that with my second child I'll get £539.16 from UC

Every month*

Should be scrapped and an equivalent amount added to universal credit.

Does anyone know what the proposals are for this coming to the next election?

@user1497207191 but a lot of families on low incomes aren't low enough to get UC.
Would you lower the threshold for UC?

If the main carer does not have access to the household funds, there are much bigger issues that need to be tackled.

Are there any statistics on the income levels of those claiming CB?

I see why in a way, there are always going to be richer households who dont NEED the CB and it goes into a savings account giving their child a sizeable sum as a young adult giving them yet another advantage over a peer whose parents had to use the money. But how many?

If there is a single-income family, what is the reason the second adult isn't also working? Outside of any caring responsibilities, it would indicate that the decision was made that the second adult was choosing not to work as the first salary was sufficient.

This is incorrect.

If your partner earns £60k and you live together, you cannot clam child benefit.

I’d make it universal again.

But, that’s unlikely. So I’d make it based on household income. The current system is absolutely ridiculous, unfair, unjust, I do not understand why this government insists on defending it.

Also I like to shout on any discussion of this: if you don’t want to claim the money, you can still claim the NI credits! You just apply for child benefit, and there’s a box to tick that says you don’t want to get the money. It also puts your child’s details in the system for them to get a national insurance number at 16.

I think I’d cap it at 3 or 4 children.

@MidnightPatrol Yes you can, but your partner then pays it back by way of the high income charge… Ridiculous but there we are.

Great question!

£100k household income.

No to ni tax limits changing, it's already generous to 12. Those whose children are disabled can already claim longer, and carers allowance has ni credits.

@MidnightPatrol probably about 2-2.5k monthly household income upwards (if there are no childcare costs) you wouldn't get anything from personal experience (2 adults 2 children family)

Its irrelevant anyway as neither of us claim anywhere near that individually