Should child benefit be means tested?

[JustineMumsnet]

There's a new report from the Tax Payers' Alliance which recommends means testing for child benefit - possibly scrapping it for households with an income of more than £50 000. Channel Five Live would like to know what mums think of the idea?

(Am going on at 11)

yes for the highest tax bracket

not middle earners

50k household income is too low

assuming two people earn 25k

thats not a lot of money in some parts of the uk.

They would be better off looking at the ridiculous waste that goes on administering CTC and WTC. I'm sure they could save a lot more money getting that right than pulling CB from high income families. It is unfair that benefits are judged on family income but tax is paid on individual allowance.

If you have a married couple with a joint income of 50K, its not that much. Two people working full time earning 25K each are doing well but are not loaded. Parents with children need encouragement to stay together. Its a balance between helping single parents without penalising couples on modest incomes.

I would like to see less means testing. It is stupid that virtually every family in the UK is means tested for child tax credit.

If you are on one income of £50K than you will be even worse off because you will be paying higher rate tax and only have one tax free allowance. £100K would be more realistic, but I still think that it should remain not means tested.

No it shouldn't - it is a valuable resource and simple to understand and administer. It also represents the time spent at home for women (usually) taking a break in their working lives to raise their children. This information is important when working out pensions, the universality is key and should be saved!

How about if the figure was set after tax rather than gross IYSWIM?

TBH though, I agree that the savings are unlikely to outweigh the costs so it is a bit of a silly one really. I twould just be more worthy of considering, IMO if the ones who needed it stood to gain something - the chances are that they won't.

well maybe is one person is earning 50k and the other person has nothing stopping them - they should get a job - like most people have to when they need money

Oh god they are thinking of paying it through cTc and we all know how well that system works don't we

No, it's a really successful benefit with aa almost universal take-up rate, unlike the mess that is tax credits. They'd do more to alleviate child poverty if they actually increased it.

one person earning 50k - quite senior management role - like very.

wouldnt like to think my CB was going to help them out with pims on the golf course

NO!! bloody hell

It pays for all of DD's clothes and nappies!!
My wages pay her childcare
DH's pay's the mortgage, bills and everything else (car/insurance/etc). Very little left after all that.

If they are going to do this, it needs to be a much higher limit.

It makes so much more sense for people to be able to off-set childcare against tax if both parents are working - that will surely bring more money in in terms of people paying tax - so often posts here explain why people can't afford to work, and it's because of childcare costs...

custardo - i don't think you don't have to be that senior to earn £50k..

I dont' think someone on 50k would be able to afford a very extravagant lifestyle custardo.
Actually two on £25k might be worse off because of childcare..

i think it depends on the industry elephant - maybe in london its a diferent animal - maybe in teh city its peanuts, but certainly looking through the jobs pages DAILY - you have to be quite senior to earn 50k

maybe if only one person was working it wouldn't be extravagant

which is my point - the other one could get a job - why not.

good point about childcare

Surely there are other ways of cutting public spending that would be less of an admin nightmare? Justine up next..

Definitely not. It would cost more to administer the means testing than to pay it. You would get all sorts of delays in receiving it.

It is simple to understand unlike a lot of the rest of the tax system.

If they have a cut off it should be higher - say £100K.

No- we'd still get it anyway but partly becuase of what drusilla said, and also becuase people not on a low income still are usually far from well off

I do think EMI should be more stricly means tested ,for divorced couples

dd has friends who get this and the kids get loads of financial support from other parent ,seriously loads .

they howl with laughter at getting emi as well

Guy sounds really on the back foot now. He didn't address any of Justines points.