child benefit - what do you spend yours on?

[PersephoneSnape]

I apend mine on (part of) the weekly food shopping for me and 3 dcs, ds2s ballet lesson and dds pocket money. does anyone tuck it away in an account or spend it on wine and handbags?

Over here ours have always been means tested. In January we had a whole new system introduced..still means tested but a lot more fair.

Idobelieveinfairies-what is means tested?

just goes in with all the money and out with all the bills.

it isn't means tested for the reason given above. You can't assume that just because a husband is well paid, he passes an adequate allowance onto his spouse and children and HB goes straight to the wife (dates back to when women generally did not work once children came along). also non means tested benefits are v cheap to administer.. they don't need tons of staff to monitor and assess etc etc . I save mine into DC's CTF accounts, did this straight away so i would not get use to it being part of my income.

Idris, that's right. It was only payable for the first child from hte mid 1970s - it was taxable before then too.

income support is calculated based on your earnings rather than given out automatically.

violin lessons

wine

I'm about to have my first LO so thanks for the ideas on what to spend child benefit on! Wine definitely sounds appealing although may need to think of something more appropriate for the baby

On means-testing, I think it is mainly as molly says - much cheaper to administer and ensures it gets to the mother who in many cases is more likely to be managing finances/expenditure for the kids etc.

By not being means tested, it also means it is much more likely that people who need it most do get it, whereas i know tax credits can be very difficult for people to claim right amount and many are put off by the forms they have to fill in.

And then finally the govt ensures that they claw back at least that amount in taxes from the higher earners - so higher earners receive it but are effectively paying it right back through their 40% tax so although they get the same amounbt which appears to be very unfair, they are actually paying it all (and more) back through income tax/NI anyway IYSWIM so govt is giving it to them with one hand and then taking with the other. So it ends up being fair even if it sounds like it doesn't, and because the admin is much much cheaper there is actually more money available to be given as benefit so it ends up being more beneficial for those people where the benefit really makes a difference to household finances.

It goes into a savings account for DD when she's older; Uni/ Car/ House deposit/ Wedding. There should be nearly 19k in it by then, Lucky devil.

I used to consider it my 'pay' when dd1 was a baby and buy treats with it, but circumstances have changed and so now it goes in the pot for us to live on.
I prefered it when it was our meal out / new lipstick/DVD / bottle of wine money .

' I don't think it should be means tested.
it is often the only money a mother can say is entirely her own'

oh, ours goes straight into dh's account and is used to live on!!

For the last three years it has been my money my salary for looking after the children.
It isn't enough for me to buy prada and D&G but it is enough for me to get some new clothes from time to time or go out for dinner with my friends without having to think about it.

And also by claiming it the SAH parent is covered for some NI contributions etc....I can't remember what it is called at the moment but I remember thinking it was important...

Home Protection Responsibility (there was a thread about it earlier today)

goes into the general pot

but I mentally think of it as paying for swimming, ballet and riding

Some of it ggoes into DD's CTF the rest stays in separate bank account and covers shoes at the moment and will cover school stuff when she starts

sorry, wrong way round - it's HRP

Fags and gin
Seriously htough, just general household expenses. Or kid's shoes.

oh, and btw, I don't smoke!

Mine pays whatever hasnt been covered from the weekly budget. Maybe gas electric some socks the car needing fixed. Just living really.

ours goes into the joint current account, as opposed to my personal account, and gets used on general household stuff.

I do think it should be means tested - tbh I feel a bit of a fraud getting a state benefit when we can make ends meet ok. I suppose if I were sticking by my principles then I shouldn't claim it, but it aggrieves me that those much richer than I (ie most people ) would claim it anyway, so I do.

Have done my research now and found out that as I was born in 1975, I wouldn't have had child allowance, as it was modified in 1977.

Also that the older/st child getting more only happened in 1991.

And that it started in 1946, with every child excpet the oldest getting 5s, then it was altered so the second child got 8s and the third child 10s.

Didn't realise that in last year's budget that from April next year people will be able to claim it from when they are 29 weeks pregnant.

wine

general pot, I would like to think though that in the future, should earnings go up, (and they should, dp only started work in Sept and I'm at uni) that I'll be able to put it in the CTF.

Don't think it should be means tested, CTC are for those with lower incomes. Does it sound odd to say I view CB more as for the child, whatever the parental iincome and CTC are more for the geberal family running costs?

This is quite interesting