So child benefit to go for higher rate taxpayers

[foxinsocks]

So says George osbourne on breakfast telly. Missed the details but sounds like it comes in from 2013!

And how will they deal with the fact that women who don't work and claim CB avoid having a NI hole - I'm a SAHM with no other income - so will I now lose out on my pension in years to come because I am not doing an income paying job?

And for many women, a partner earning a good salary doesn't mean they have any money of their own. I am very very disappointed by the government. What next - will we tax married couples as couples again?

"The same way that they know if you're in the same household for Tax credits, everyone will have to fill out a form when they claim the benefit."

Ah sorry didn't know that, but then there are obviously going to be huge administration costs. I am sure I read somewhere that just giving everyone CB is in fact CHEAPER than administering it to just the few.

Dueling Yes I rang up NI people a few weeks ago regarding various things and they told me that if I recieved child benefit then I would get pension contributions paid so god knows what they are going to do about that. Take away our pension contributions I guess as we are only looking after children. Nothing important to the economy in the longrun rollseyes

sweetkitty - it's a big hole isn't it.

THis is horrible - withdrawing a benefit from women on the basis of what their mostly male partners earn

I don't mind losing the money - we don't strictly need it. Its a nice extra.

But I work (voluntarily) as an adult educator for young mothers, with a charity. At the moment we can afford this.

If I lose my NI protection, then I don't know if I could do that any more - I need to think about my pension.

By not working and volunteering instead I actually save the government a lot of money, and my reward for this is to have my pension taken off me?

Sorry, I am being quite thick about this. My DP is paying 40% but I earn way below this. Would we still lose the child benefit? It's really scary and we will be £130 a month worse off and when we are paying £130 a day in nursery fees it's going to really hurt.

Yet again, those who work hard are to be penalised! By the time I have paid for child care out of my salary, I would have £50 a week for working full time without child benefit. I know CB is not that much but it DOES help and make it seem a little worthwhile going to work!

I work and therefore pay a fortune in tax & NI. I also pay for child care which in turn generates business tax (from the nursery) and tax & NI from the nursery nurses. If I don't work, I'll get more benefit and put nothing into the system!

No wonder we have such a benefits culture! Apart from CB, I have never claimed benefit in my life. CB helps me afford to be able to work and put money back into the system. Without it I may just as well stay at home!

I didn't know that about NI conts. I will have to get a job. Oh wait! The cost of childcare makes it pointless!

They really are c*%ts!

If they scrap it fir over 50k household they should scrap it for everyone.

From the BBC website:

He confirmed the cut would hit homes with a single or two high earners. But families with two parents on modest incomes - which might add up to over £44,000 - will keep the benefit.

Yes Stokey. it's based on household income. I can see how you feel but as a single parent I would be seriously pissed off if married couples with a SAHP still got it and I didn@t qualify

And it was my understanding too that it would cost more to administer than to means test. Didn't realise that about the NI contributions. That's insane, surely they can't be planning on cutting those out too?

It's affecting a small proportion of middle earners where one person has gotten off their backside and got a good job and managed to break the 40% tax band.

Will not really affect anyone earning a lot or anyone earning under 44K.

osbourne, osbourne child benefit snatcher !!!

i am going to have to work on that chant.

he is a sneaky little nob. how on earth are they going to claw it back through tax, they will make so many mistakes and piss everyone off.

Is the gap between £37k and £44k personal tax allowance? I think tax bands are phrased as you go into the 40% once you earn X over your personal allowance so a person earning £44k is earning £37k over their personal allowance of £7k. In which case personal allowance is going up by about £500-£1000 iirc.

I don't know Riven. Basically on BBC news Sian said so people on £37,000 (the current 40% rate) and the devil said "well by then £44,000" or something like that, then after he'd gone to drink some blood the business journo made the assumption that he is basing it inflation and otherstuff.

He said on R4 that it could be clawed back through the tax system but he wanted us to do the "right thing - and stop claiming". Which does kind of presuppose that the NI element will be lost.

Cos bringing up the next generation isn't worth it, presumably!

Just heard on BBC that it's not based on joint income

My gut feeling is that the cost of means testing it will be almost as much as they save. It is a political thing - and will actually make very little difference to budget deficits.

I wonder if child support from a separated parent counts as household income, it no longer does for benefits.

Women! Know your place.

Low blow, George. Really Bad Form.

Will cost us £150/month, DH is just in higher bracket but we live in SE, it's a huge chunk out of our finances :(

Currently you need to earn £43,875 to be paying higher rate tax. The tax allowance of £6,475 has stayed the same for the past two years. But I do remember before the election that there were thoughts about it going up to £10,000 weren't there?

Having just seen someone say that two income families earning over the threshold would keep it then it looks like I need to earn a bit more money if DH does get into the higher rate tax band by 2013, which seems likely. Seems ridiculous that if he earned an extra £500 gross that we would be £1,820 ish net worse off a year. Am almost tempted to have an this morning.