Make Child Benefit a Means Tested Benefit.

[Whatabonkersworld]

So, the Winter Fuel Payment has been made means tested. According to the government older people have no need for any help to pay their winter fuel bill.
In a dose of reality here's another massive cost saving exercise. The annual bill for Child Benefit is something over £12bn. I suggest Child Benefit also become means tested and only parents who receive tax credits are eligible. Those unemployed would receive a stipend added to their universal credit, but would not be eligible for Child Benefit. This would become a strictly working persons benefit. This would save the country a huge amount of money and will hopefully pay for the inevitable pay increase recommendations for the rail workers and consultants which will shortly be coming round for negotiations.
How how does everyone like them Bananas!

Sorry don’t agree, child benefit along with my “20%” saving on childcare are the only bits of financial support we get. I already pay a significant about of tax and have done for the 25 years I’ve worked and will continue to for the remainder of my career.
Why shouldn’t I get a small contribution to raising my children?

Tories discussed moving to a household income vs individual income model pre-election.

Unsure what Labour’s position on it is. I suspect they’re most likely to move it to household but not change the overall thresholds however - meaning less people eligible.

In an ideal world every benefit/allowance would be means tested to ensure those that need them, can get the right benefits, but unfortunately there isn’t the manpower available, people waiting for decisions on their applications for help are really long and sometimes complicated.

Both my DH and I are retired, he receives state pension plus 2 small private pensions, I get 2 small private pensions and will get state pension in a couple of years. Luckily we have savings to live off, but the winter fuel allowance was gratefully received, but yes, we can go without it and if it goes to someone who needs it more, then all the good.

Absolutely don't. There's a lot fewer children than pensioners. And it's already been changed anyway.

IMO a problem (more broadly) with making benefits only accessible by those on very low incomes - is that it creates an ‘us and them’ mentality and stops people supporting those benefits.

That was a good thing about child benefit pre-HICBC, it was a great leveller - it meant most people were utilising the welfare state in some form.

at the minute people who don’t actually receive the cash as someone in their household is over the limit still get the ni credit

We have a population crisis. In a generation's time, there won't be enough working age people to support retirees. Given this context, means testing child benefit simply doesn't make sense, especially as it's only £170 per month max.

We need to make it easier for young, working people to have families.

Funny how people are suddenly against benefit cuts when it affects them...

Yeah sure. Something else to penalise single parents who already don't qualify for benefits with. Nice.

My mum and dad are seperated, have been since I was a kid. My dad is comfortably well off so,I agree he doesn’t need winter fuel allowance. My mum doesn’t have a lot of money but she doesn’t qualify for pension credit as her state pension plus small nhs pension comes to more than £218 a week. £218 a week isn’t a lot when you live alone and have to pay council tax and all the bills. She doesn’t have any savings to use. I saw Martin Lewis’s has done an article where he states the bar for cut off is too low. The bar for not receiving child benefit is much much higher snd has just been increased.

Agreed. Plus, there is no incentive for people to increase their incomes if every pound they earn is taken away from their entitlements.

I don't understand the two income thing though. If a couple can't afford to have one sahp so both work, why should they subsidise a couple who can afford for one to sah? Specially when the dual worker family will be paying two lots of NI, compared to the one paid by the single earners, and forking out for commuting and other work costs, as well as childcare in most cases.

That's something I hadn't considered and sounds like a fix is needed. Maybe total income rather than individual?

Pensioners already have large tax savings compared to everyone who works. They don’t pay NI.
What we should be doing, is bringing in a standard rate of tax at 25-27% for all and remove NI.
Now that would be fairer

It should be left alone for women to claim. Need it for their pension stamps whilst early child rearing.

What about SAHDs? Are they not entitled to pension stamps too?

Good point.

That's what I also love about free school meals for all children in Scotland- cuts out stigma for children on low income if all children get offered the same.

Sorry, any parents who have to stay at home. Of course!

Means tested benefits are much more expensive to administer. I would also favour returning to universal child benefit because (a) all families incomes are squeezed by children (b) financial abuse can mean childrens main carer can struggle even with a millionaire partner (c) less financial strain can help happier marriages and partnerships which are better for children (d)investing in children means they become better citizens in the future which means better earning capacity and fewer criminals so would be best to fund via income tax.
Lack of fuel payments could help pensioners downsize freeing up housing

Real means testing costs lots of money. They mean they're increasing pension tax credit.

Although at the same time they've saying huge numbers of people don't claim pension credit who should. They're going to work with local authorities to increase this. This work has a cost before you get to the annual increase from more claiming the benefit... Which is a doorway benefit to other money.

If they means test child benefit they it'll be messy... As it has now with the 50k limit and unfairness that this causes.

Upping tax allowance is a better idea ... Actively allowing parents to earn more without tax ... And perhaps sharing of tax allowance... But lots of arguments against that too.

We need to make things in this country rather than have coffee shops and house building. Until we have an economy that is real weate goosed.

So many older female pensioners were SAHMs. There were no NI credits then, we were supposed to rely on our husbands in retirement. Just being a few quid above PC level doesn't make pensioners well off. But the opinions of some seem to be that we're all rolling in money.

Child benefit is means tested already.

Winter fuel payments DID need some means testing because it was ridiculous that it was a universal benefit to a group that - on paper - are the wealthiest age cohort in the country.

The threshold might be too low and I hope that makes some adjustments if that is so, but on the whole I support it.

It was clearly a cut made to give public sector workers a pay rise. All public sector workers are really underpaid, especially comparing to other developed economies and tbh they need to dramatically improve pay and conditions to stop the allure of moving to Australia, Canada etc.

Would you rather have your Winter Fuel Payment but fewer GPs? It is shit but this is where the country is.

Yes, we fall foul of this. I am too ill to work. It’s not fair that a couple taking home more than our household gets CB when we have never qualified.

There's already a "child element" in UC and Tax credits so the OPs suggestion that only those on means tested benefits should get child benefit is daft. And as PPs have said, the cost of administering this would far outweigh any potential saving.

Love this logic. "I'm pissed that I'm losing something so let's punish someone else. oh I know! Let's punish the children! The ones that can't vote are the ones to punish! That'll show 'em"
Qnd people spoke of gross glee and heartlesness on the other thread.

It is means tested. The problem is, it doesn't take into account how many children people have, or dual income. So a single income household with 6 children where the sole owner is over the threshold doesn't get anything, even if the other adult in the household has left, died or is going through chemotherapy. A dual income household with one child gets it for that child. Our government hates parents. Hadn't you noticed?