High Income single families losing Child benefit

[ReturnoftheMe]

Hi there - I know this has been talked about extensively over the years, but I wondered if anyone has been following the topic and discussions around it in parliament for the future? Are there any changes to come for the next budget?

I am a single mother with no input from my 2 kids father. I live in London work full time and currently cannot afford to put my 2 year old in nursery as fees are too high, and I am not eligible for any help (fees are 2k + a month in my area). Luckily my mother has stepped in, but without her I'd have to claim benefits and not work, or I'd have to dial down my ambitions and go for a part time job which puts me at a disadvantage in my work place.
This year I will gratefully receive a bonus that just about puts me at the point of not being eligible at all for any Child Benefit down to the penny. This really bothers me because all the families I know all receive it still. Some really high earning self employed couples who manage to complete tax returns that keep them eligible and even my own brother, both him and his wife earn 50k and 46k respectively and they still get CB for their two boys.

When is this going to change in order to be fair for single mothers like myself? I cannot afford nursery and I also do not get any child benefit. Something is incredibly wrong here.

Am I being unreasonable to feel as though this is unfair to single mothers?

Very basic calculation but:

60k - 50k = 10k
Tax would be 40%
NI 2%

leaves £5800 minus but means paying back
child benefit 2 kids = 2074.80

5800 - 2074.80 = 3725.20 in your pocket.

If you pay into your pension the 10k via salary sacrifice you will get 10k in your pension and it will ‘cost’ you 3725.20. (310.43 a month over 12 months).

Nobody cared at the time it was introduced. If you mentioned it people said ‘but 60k is rich’. I did write letters at the time but most people I mentioned it to thought I was bonkers.

The government did a grand job at getting us to fight amongst ourselves and no doubt planned on never raising the threshold.

LOADS of people cared at the time. I don't know anyone who didn't complain, point out the injustice, write to their MPs, or something!

As I said, couples who earn £99k between them (both just below £50k) could keep it, but a single earner who earned over £50k lost it.

Madness.

Doing it in such a blunt way was the only way they could bring it in quickly, whilst public opinion was largely on their side over it, without needing a new computer system.

Not because of any ideology or any big thinking.

Single parents really get penalised. Similar thing where if you’re a single stay at home parent your child doesn’t get help with childcare, whereas if you’re a stay at home parent but have a partner that works you’re entitled to help with childcare including the 30 free hours. It’s baffling, especially if you’re a disabled single parent and can’t work - you’re still not entitled.

It was all disgraceful. Eleanor Rathbone MP lobbied for and created child benefit because she could see horrific inequality and need amongst mothers with children. It went across all socio economic demographics and so she stipulated it be non means tested and went to the mother unless there were extenuating circumstances.
Then we got the Tories this time round.
Situations like yours are a disgrace. As are those where the man earns £60k +, won't 'let' his wife work, and keeps her with no money, seeing all he earns as his. Yes they do exist in this day and age.
It needs to be returned to what it was.

That's not true, for the 30 hours both must be employed unless for a reason beyond being a SAHP such as disability or being a named carer for someone. If one is a SAHP you aren't eligible.

Hmm, agree with your first paragraph but not the second. It's pretty obvious it had the wider aim of gradually reducing the number of people eligible, turn it into something for lower earners. That's an ideological choice.

People certainly cared at the time. It didn’t affect me but, having been a single parent, I was shouting at the radio when it was announced. It’s completely bonkers.

To give the other side of this. My ex earnt over the limit so I got no child benefit and no entertainment to help with childcare etc. But I earnt less than the cost of childcare and ex didn't share his money with me. In fact I had to contribute to bills. Our household income as over £100k back then now I'm on about £16kish and I have way more money now than then.

Yes it's unfair but in situations of financial abuse it's all some women get

Just read this article and thought of the OP, written by a well known tax lawyer.

https://www.taxpolicy.org.uk/2023/11/20/hicbc/

@Araminta1003 thank you, it’s an interesting read, especially with the comments at the end. So many in this situation!

Yeah it's a really good article.

I didn’t read every reply so someone may already have told you this but you should make sure you are working off your taxable income and not your salary when checking what you need to pay. Some deductions like pension/some share schemes & charitable donations (& possibly others as I just know the ones we do) can be used to adjust your salary for calculating what you need to pay back.