Waiting with baited breath! What will the chancellor do with CB on Wednesday.

[chickydoo]

Probably been done to death, but holding my breath to see what the budget will bring for child benefit on Weds? Will there be a U turn?
What do you think will happen?

And he still didn't address the loss of HRP credits did he? so basically we've lost our child benefit, and I've lost my state pension?!

£60k I mean

It's still a half-assed mess pretending to be policy.

No word whatsoever on the NI credit.

And it still breaks the principle of independent taxation.

And it'll be ever more expensive to administer.

Fail.

50% tax rate NEVER worked.

All very very good news here.

I think 90% of people will keep their CB. I will lose it as I earn over £60,000 as a single parent without support from the other support. It was a very good universal benefit and those are the benefits which keep people supporting the welfare state.

I think the 45% tax rate is probably a good compromise. 50% was clearly too high and was a political boobytrap left by Labour. That said as a symbol, now isn't the time to scrap it but at the same time we need to encourage enterprise right now not discourage.

So from that point of view meeting in the middle is probably a good compromise.

And 45% will bring in MORE tax than 50%. Why people dont understand that I have no idea.

caramelwaffle

do you mean yes to the form filling or yest to the super computer at no.10?

what happens if your basic salary entitles you to receive child benefit but your bonus on the years you get it takes you over the threshold?

I still think there is a massive cliff edge on incomes of 50-60k as you are paying 40% tax on everything as well as losing over 2000 in child benefit (assuming you have 2 kids). It could be that you only end up with a couple of 1000 of money earned between these income brackets.

Pretty much as expected. I am self employed, and took a massive hit when the credit crunch first took hold. My income was effectively down by two thirds, taking me well below the minimum wage, whilst my firm tried to hold things together for the paid staff we employ.

But, DH earns just over £60k (London wages, and therefore living expenses), and so I lose the CB. On top of my two thirds loss in income. I have holes in my jeans...

Still, the sun is shining here, and it's Spring, so we keep smiling.:)

BOMtobewild, I'm in same position. DP is not my DC's dad, and doesn't support them - he pays for his own DC, who live with his ex. I will now not get CB because his income is over £50k, although this is significantly less once he's paid child maintenance.

DP pays towards the household costs but not for my DC.

Same as jojobee - how does a bonus affect it, as at the beginning of the year you will not know how much, if any, bonus you will get? Will they reclaim CB from you if your bonus takes you over £60k? Also my childcare vouchers are done as a salary sacrifice so will this be included or excluded in earnings? So many questions still!

It's a universal benefit and should stay that way.

I know the likes of Victoria Beckham received it when she was resident in the country, and I know of a few families who use it towards the upkeep of their horses, but for me the fact remains that it's a universal benefit and as such is sacred.

Guess it will be done year to year as self-employed people with varying income will also face that problem.

You will end up having to pay some or all of the cb back I guess. Another one where single earner dh is over the threshold, but as carer for ds my ability to work significantly impaired. Or we are going to be one of those families who loses whilst other duel earning families bring in more and keep cb. Well didn't expect any better, carers, disabled children, women always take the brunt of budget changes, happens year on year.

Also heard on news last night that average family has left over income, after bills and essentials of £147 a week....really, who has got mine then...come on hand it over!

I am wondering about pension/NI contributions as well. We will not get any child benefit under these rules because of DPs salary - this does seem a bit unfair as a couple with a much higher joint income still could if they were both under £60k, but whatever, we can manage without it. But the NI contributions thing is more worrying as that could have bigger consequences for my future finance...

paying back cb was comment to jojobee -sorry

Piffpaffpoff I have just written to my (Tory) MP to ask her to justify how it is a fair situation that a family earning £98k (2 x just under the £50k) gets CB, but a family with a single wage earner at £60k doesn't. And although it's fine that they are tapering from £50k so as you get pay rises the CB tapers off, how is it fair to just remove the CB completely from next year - one month £140 (2 young kids), next month nothing?

Donning a hard hat now as I am sure someone will say that anyone earning £60k in a household must be bathing in asses' milk and eating caviar - sorry, but we live in the South East and the mortgage alone is crippling for the next 23 years! (not in expensive town either, standard 90s housing estate), don't smoke, run economical cars, don't have Sky sports/movies, don't go to the cinema/skating, don't go on expensive holidays (max £1500 holiday budget if DH gets a bonus)

Does anybody know when the CB changes will actually kick in?

It's sure to be a horribly unpopular decision politically as well, alienating the middle-income families who are too 'rich' to qualify for any benefit including CB now, but not wealthy enough to not care. £60 is an extremely low threshold IMO, that really isn't a very high salary, especially when the other partner may earn much less or nothing at all...

Sparklerainbow what did they count as essentials? We are working on a strict cash budget of £230 pw after bills, but before food (around £80 unless need to stock up on loo rols/cleaning stuff) and fuel (about £80 - £110 as DH's office has moved so he has an 80mile round trip each day).

Housemum, we live in rural midlands, in small 3 bed cottage, eat value range foods, grow own veggies, run very economical (old car), don't have hoildays and can't afford them, don't go out ever as can't find anyone prepared to baby sit ds, don't have sky, just freeview, don't smoke, don't buy new clothes except at second hands shops, or warehouse retail outfits. All our money goes on having to provide for ds' needs, adaptations, hospital visits. We are buggered, which ever way.

We all agree it's wrong and no one seems to know how it's going to be implemented. The only people who will be disadvantaged by the loss of CB are children - it does mostly get spent on them. Anyone any ideas as to how we get the male journalists currently spouting about the 50% tax to discuss this instead ? Oh and do remember that all European workers in this country can claim CB and send it back to their families still abroad.

I am not sure that is the BBC for you, but I assume essentials included mortgage/rent, electricity, gas/oil, and food. My dh has a 140 mile round trip every day to the office....office moved after we moved to be closer to it, would lose money on house if sold now, so he has to commute.