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!

I am glad we have been given notice. However, it is not going to help get people on benefits back to work. It will just add another batch of people to the jobs market. SAHP who now need to work because they will lose chb. How is that going to help?

Haven't read all the posts but this quote from the DM says it all really:

"It will mean that any couple with one earner paid more than the £44,000 higher-rate tax threshold will lose their child benefit, even if the other stays at home and has no income. So two working parents each earning just under the higher-rate tax threshold could earn more than £80,000 and retain child benefit, while a household with just one income of £45,000 would lose theirs."

That's the crap bit!
The above is our situation and just because I've chosen to stay at home and look after the children whilst they're little, we lose child benefit. Once they are old enough to let themselves in after school, then I will go back to work or if I find a job that's in school hours, I will but until then, I'm being penalised for being a stay-at-home mum.

In theory, I don't disagree with the cuts but they need to be fair and they're currently NOT.

The Conservatives are utterly bizarre to bring in this rule. They used to claim to be pro-choice for mothers. Now we seem to have none. They would like to divide and rule the SAHMs and the working mums! No, they won't, will they sisters?

I know many mums that are in PAID work, and many that are not in PAID work. Many of us in my area are in low-paid, term-time employment or volunteer at playgroups, schools and work as unpaid carers in our community. I do three unpaid days: two looking after my Mum and another at the school, however, they would want to take away child benefit if my dh earned enough! Well, I'd get a full-time job then, and the State could look after her instead - that'll cost them more than the Child Benefit - believe me! As for all those Single Mums who are just over the Threshold - I cannot imagine how cross they are.

This rule smacks of misogyny!

Actually, they won't affect me yet, because my dh doesn't earn quite enough and now he has no incentive to earn more. (Again a very strange situation to be in under a Conservative Government) but if we were in the South East we'd def. be affected and FUMING.

I hate to admit it, but GB understood us all a lot better!

In the case of single parents earning their butt off to get such a high wage, they won't have anyone to transfer a personal allowance to, or to go and earn the loss so they will be the hardest hit.

I worry about what they are going to announce next. Take more money off the lower incomes because the middles incomes have already shared the burden, when in fact they haven't really.

Thank you Rantyknickers, will be nicking your letter and passing it off as my own

I rekcon they should look at wealthy pensioners and take away free bus passes and extra fuel pay outs if pensioners have over a certain income.

Good letter rantyknickers. I also wrote to my MP yesterday but it was just after the the news broke and it was quite emotional and ranty so I won't post it on here.

Ds1 (aged 6) is well up for marching on Downing Street. Last week he wanted to work in a sweet shop when he grows up but this week he wants to be leader of the Labour party. He said when he is prime minister he is going to bring back free milk for children in schools, he wants to make sure all the children in the world have enough food to eat and he wants to only do schoolwork for 10 minutes and the rest of the day will be playing football and lego if it rains, oh and he also wants it to be against the law for parents to make their children go to bed before midnight.

I think in return for losing my child benenfit, I would like to see the following

All public sector workers to lose their final salary pensions to be replaced with rubbish defined contributions pensions like those in private sector.

BTL speculators or anybody with more than one home) to lose all tax relief on mortgage payments

Pensioners to be means tested for state pension, winter fuel allowance etc

Benefits capped at £10k/year not the new idea of £26k/year.

Capital gains tax at same marginal rate as income tax (40% or 50%).

Non-doms to pay income tax like the rest of us.

Thats just for starters!

A family with 3 children and one person earning £45000 a year will take home approx. £33000 and lose £2500 a year, representing a reduction of 7.5%. The same family on £100000 a year, taking home approx £65000 will only see a reduction of 3.75% in income. Arguably the higher earner already pays more tax but this is based on the principle that they can afford it!
After the tuition fees review is announced next week, it will become necessary for many earning around £50000 a year to seriously consider a reduction to part time hours or changing employment to gain a lower salary in order to qualify for child benefit, tax credits and to secure funding so that their children can afford to go to university. Just the type of disincentive David & Co. say they want to stamp out.

Agree, Siasl. I'll take the hit on CB if I can see fair economies are being made elsewhere. For pensioners to escape is ludicrous. Can the baby boomers laugh in our faces any more loudly? And as for buy-to-let investors or even second-home owners... don't get me started.

I can honestly see a future with more "divorces" in that if you factor in the cost of university tuition fees for a couple of children at c£100k, it won't be economically viable to be married to a person on a modest salary.

I wholeheartedly agree with Siasl, that if you lose CB then you should have some say in how it's spent.

One idea that's occurred to me, is that families could VOLUNTARILY GIVE UP CB -
I'll say that again ........
VOLUNTARILY GIVE UP CB if they think they can afford it.

From what I've been reading on other sites many people do seem to fall into this category and it may even include people on a joint income of £80K. In return for such an altruistic gesture the families who give it up can then vote on how it is spent!

How's that for democracy!

Then it won't affect single mums; the families who are a bit borderline with very young children and one SAHM; or other borderline cases with one parent in low-paid or unpaid work.

I'm the main earner in my familly. I've just been diagnosed with a bladder condition that is very painful. I'm finding work and life very hard. But I keep going for my kids.

I'm losing out big time. I get no help.
I make me want to just quit.

Really cheesed off about this. I work. My husband is at home with the children.

I am in the 40% band so we lose the benefit which my husband claims. Two working parents earning the same as me can still get the dosh.

We're effectively £3k a year worse off (because the benefit is untaxed).

How is that fair?

Very angry as Tories promised before the election that they wouldn't do this. Lib Dems have also said there was no way Child Benefit would be touched.

We have been betrayed and lied to.

Really cheesed off about this. I work. My husband is at home with the children.

I am in the 40% band so we lose the benefit which my husband claims. Two working parents earning the same as me can still get the dosh.

We're effectively £3k a year worse off (because the benefit is untaxed).

How is that fair?

Very angry as Tories promised before the election that they wouldn't do this. Lib Dems have also said there was no way Child Benefit would be touched.

We have been betrayed and lied to.

Thanks rantyknickers, will use your letter as a basis for my own!

The Tories have royally fucked up as have the lib dems with this, and it isn't about the fact that they are making cuts - all parties would have done that but the problem is the total injustice of it all. I have friends who both earn around that much BUT WORK FOR THEMSELVES and I know fiddle the books so will still recieve CB I am sure, whereas my dh and I one in the hrt bracket (not by much) and myself very very much under (lets put it this way if it was still here would be in the 10% tax bracket!) with far less combined income won't get it. That pisses me off. I am sure we can get by without it (not happily no as we have just had a 2nd dc so costs have increased somewhat!) but it will impact on everything. I can't believe they have been so shortsighted about the whole situation and that they haven't thought about the irritation to probably the largest group that voted for them!

So what is next, Sure Start, Free Nursery Places, all the things that impact on those of us with preschool age children who have done our most to contribute to society. What these decisions do is take away any independence financially I might have because it will be unworkable financially for me to work as I don't earn enough with 2 children to pay for childcare. So although I have contributed up until my mid 30's I am now being forced to either pay extra for childcare so that I can work (losing financial independence) or stay attached to the kitchen sink.

At least that is what it feels like.

Absolutely,gramercy - if fees are £10k pa, a reduction in gross salary of £15k pa equates to a break-even situation, if the reduction in salary equates to full funding for university. Add in child benefit and tax credits and a reduction in salary from £50k to £30k looks to good to refuse.

Didn't they say on the news this am that they're going to do something about transferring the SAH parents tax allowance to the working parent to balance out some of the unevenness?

I know this doesn't help single parents but its potentially a small concession, for some, that didn't get announced yesterday. Role on the 20th October when it all stops being rumors and we can actually take stock of how we're effected.

rantyknickers - very good letter indeed.

You also described perfectly my parents right down to the new conservatory and cane furniture. I spoke to them a few week ago about pension ages going up. They just dont get it.

siasl - even though what you proposed would potentially hit me hard. I agree. Someone has to pay more tax and as long as benefits were capped and people who can work were made to work then I am happy to accept the cost.

gramercy - totally right about the baby boomer generation. They are such a dominant voting block and their sense of entitlement and the way they dominate political policy choices now is reaching offensive levels.

The decision by the conservatives to scrap child benefit for higher rate tax payers is an utter disgrace. Child benefit should be universal in a society that values families. I earn just above the tax threshold, and it is people like me, the people in the middle that will feel this the most. Child benefit is crucial in giving mothers the option of taking time out from work and care for their children. This cut will limit the choices of mothers. If the conservatives really valued families and stay at home mums, they would not even consider this measure.

Thanks ranty- have copy and pasted the majority of your letter and sent it to my MP - who is a woman with little children so she might know where we're coming from .

If anybody is writing to their MP about this you may want to include this quote from David Cameron in a speech to the Welsh Conservative Conference, March, 2009 "Families are the most important institution in our society. We have to do everything in our power to strengthen them." Talk about hypocrisy.

oh bum - oh well - too late now but fab quote miss daisy.

Apart from the laughable spectacle of Osborne saying "We're all in it together" How when it's unfair to ask low rate tax payers to pay Child Benefit for high rate payers is it apparently fair to ask those families on 45K to do without 2.5K (or more if they have a larger family)but continue to pay it to families with 86K coming in. In addition it will especially hit single parents who don't have the option of a partner who's at home going out to work.

Also too late for me. Perhaps I can use the quote when I get fobbed off a reply