how is this fair - child benefits - single parent

[birminghamgirl]

I have worked since my son was 13 months old. I am fortunate in that I do earn £44,000 a year which is alot BUT I am a single parent and pay alot in childcare. I don't receive any maintenance from my ex. Last year I was earning £42,000 a year and I went for a promotion which means longer hours and more child care.

Now because of that promotion I will lose nearly £1,000 of CB (plus paying the extra child care and having less time with my son).

While my neighbours - he has a job earning about £40,000 p/a and she works part time - school hours so they have no child care costs and their children benefit from her being at home after school etc. Anyway, she earns after tax £18,000 so their combined income is £58,000 and they will receive CB.

As for the married tax allowance....it seems single parents are penalised for working and stimatised for not...

I meant stigmatised not stimatised...

It's not fair

It's the Tories.

They weren't even voted in and they did not say this in their election campaign.

It's not fair at all, especially for single parents.

If you have an Occupational Pension Scheme at your workplace - shovel a much higher percentage of your wages in to this: this will take your wages to below the £44 000 threshold, therefore you will still be entitled to the CB.

That is my humble reading of the situation - but do contact a Tax Specialist for further advice.

I can not comprehend why they are being allowed to do this, surely something can be done, its ludicrous and so so wrong on every level, single parents get it hard enough, i really feel for you, I am a single parent too and receive no maintenance payments, and have just found out that my teacher training course will have to be funded by myself now as they have stopped all funding for certain college courses, i am just trying to better myself for my son and yet again as a single parent are being penalised.

Hello, sorry to barge in, but I am still looking for signatures for my petition www.ipetitions.com/petition/unfair-childbenefit-cuts CHILD BENEFIT CUTS: Stop chancellor from unfairly targeting one-parent & single-income families. I've got just under 200 but now it's out of the news, there's not much traffic anymore (though thankfully we've got to 2013). Also the site 'begs' for a donation after signing - just close that window, it's a bit cheeky of them really as it has nothing to do with the petition. Thanks in advance.

Just tried to sign, but got message that it's a non-existent petition.

FFS, £44K is vastly more than a lot of people have with both parents working. If you need benefits to keep afloat whilst earning £42K, you should maybe consider downsizing a bit.

Yeah, possibly it'd be fairer if double-income earners of £60k lost them, too. But it doesn't mean in return that someone on £44K should rely on a benefit.

Downsizing - buying any house is expensive for a single parent on the OP's salary paying for full-time child care. The OP works hard and is hardly rich.

The thing that gets me is that higher tate tax payers will apparently keep their winter fuel allowance. 'Elderly' people with no mortgages and no child care costs to pay.

widowwadman, this is someone on 42k on the outskirts of london...

check these figures for a lone parent and 2 kids, one pre-schooler and one at school: [and these are real figures]
salary: 42k [have used this figure as by 2013 it will at least this low] is after deductions [2575.35]and inc pension contributions [no choice if you are a teacher etc]is left with: £2325 [pension contributions £250 pcm]. sounds a lot, yes it is. however...

average rent for 2 bed flat/house @ £1000 [excluding council tax and this is todays renatal price not the future [2013] whereby it will have risen again].

childcare; no fancy posh nursery, a normal childminder for one pre schooler and one at school [b4 and after school care], 4 mornings at nursery [partly funded by governemnt] totals £265 p/w which is £1148 pcm.

so take rent and childcare [which you need in order to earn the massive £42k!] leaves that family of 3 with...£177 per month.
177 multiply by 12 months and divide by 52 weeks leaves: £40.84 per week for family of three. And that LP is going out to work at 7.30am, 5 days a week and getting home at 5pm.

Child tax credits will be taken away from £40k+ in january or april which would have contributed to the childcare in this case. but not now. child benefit would bring up this persons income by £30 p/w, totaling £70 p/w. Without CTC and CHB there is a massive difference.
sorry but am so fed up of hearing that 44k is loads of cash! It really honestly isn't that much in london. child tax credits to help pay for childcare are/were essential to afford a family to work and CHB is/was essential to help this family live. hope that makes sense?

what should this family do to possibly downsize? the LP and the two kids move into a one bed flat? or maybe it would actually be more worth her while not to bother working at all until her kids left home?
as for 2 parents, one could stay at home and so not pay childcare, or both could work at different times of the day..it is more flexible with 2. a LP who is working FT cannot go and get a evening job on top of regular work 'to help out'! a 2 parent family does have the 'potential' to earn more, a LP does not.
hope that helps!

I agree with the OP.

It's unfair that one household with a higher income can get it and another with a lower income can't.

Their buzzword is 'fair' - well this isn't.

so, eleanor, you would seriously expect this mum and 2 kids to live on £40 per week for food, bills, etc [not even including council tax] for 4 years [and more and non stop]?

that is just over £10 per week on food each per week.
they will be ok, when her kids dont need childcare...last time i checked that was year6 in school, not 4. glad you are doing alright though.

and by the way, £65 per week is the amount a single person gets on JSA...go compare.