UK & World News
Child Benefit Payment Cut-Off For Families
Child benefit payments to more than a million people are due to be cut from Monday, as part of the Government's plan to reduce spending.
If either parent earns £50,000 then payments are to be reduced on a sliding scale, with those on a salary of £60,000 or more losing it altogether.
Treasury minister David Gauke said it was a decision that had to be made to save the taxpayer as much as £1.5bn a year.
"Everybody has got to make a contribution, we're reducing benefits and we've made some cuts in benefits," he said.
"But it's right that those who are earning more than average, those who are in fact in the top 10-15% of earners, make that contribution."
As many as 300,000 of the 1.1 million who will see changes to their child benefit are yet to have received a letter from the Government informing them of the cuts.
HM Revenue and Customs (HMRC) has said it had been unable to contact everyone as it held incomplete data on some customers following changes to their income, relationship status, or address.
Child benefit is currently £20.30 a week for the first child and an additional £13.40 for each child after that.
For a family with two children and one parent earning more than £60,000 it means losing £1,752 per year.
But if both parents earn £49,000, the benefit will be unaffected.
Those expecting to lose payment have until the end of today to opt out of receiving the money by filling in a form on the HMRC website.
Otherwise they will continue to receive the handout and have to complete self-assessment forms to repay it in tax.
Mel Smith has two young children and does not work, but her husband's salary level means they will lose all of their child benefit.
"It doesn't seem fair when we only have one income," she said.
But while taking with one hand the Government is considering ways to give with the other.
It is thought new proposals may include allowing families to offset some of their childcare costs against their tax, making it easier for mothers like Mel to return to work.
"I would seriously consider going back to work full time if that were introduced," she said.
"It would be better for me to do full time really than part time but again you have to weigh up whether it works out as a family."
It is estimated that around one million women are missing from the workforce because of the price of childcare, which amounts to almost 27% of the average family income.
what do you think?
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Should only get it for two kids,anymore than two kids you should pay for them yourselves,
If you want kids you should look after them yourselves not expect the tax payers to help,there's too many people on this planet as it is.
well said...if you cant afford dont have.
I don't work,my partner does. I chose to stay home and look after the children as in my eyes it's nobody else's job to look after them. We do claim CHB and it helps greatly(we are entitled to it just as any other low wage parent) with the cost of children's items. I don't agree with the rich claiming it though. Why on earth would they need it?!
I think this fair enough.though id rather see second homes taxed and a mansion tax.it stupid that peaple on benefits are being taxed for having a second bedroom but the rich pay nothing for a second house.and that includes homes abroad.
Taxed for a second bedroom ? what are you taking
Yep tax on 2 bedroom. Ludicrous especially when mps have 2nd home with Exp paid, well Michael if you actually know the truth about benefits you would know that this is correct
What am i talking about? Micheal, more like where have you been.katmando or something
Not everybody with more than one house is wealthy Shaun,a friend of mine is a self employed electrician and rather than pay into a useless pension he decided to buy a couple more properties and rent them out,hopefully giving him a little nest egg for retirement. Why should he be hit with hbuge taxes just for trying to make a few bob to retire on?
Shaun seen the article - a couple living in a 4 bedroom house will only be able to claim housing benefit for a one bedroom house Seem reasonable to me I drive a 1600 cc car my firm does not allow me to claim expenses for a 4.2 litre BMW - its totally unfair
Yes micheal i can agree to that in principle but peaple are being stuck in an awful catch 22 situation as some cant any longer afford to live in their homes but cant afford to move either.and are getting into debt as a result.but rich man joe bloggs can have a second home which remains empty for the majority of the year.which is forcing local peaple out of the area.particuarly the young.yet these places go untaxed.i dont believe this fair to anyone except for rich joe bloggs to have a holiday in for two weeks.
Benefits are there to assist those who can not genuinely afford to bring up their children as they are on low wages Not to top up the wages and boost the life style of those who well off compared to most Unfortunately there will be those on 50k plus who have used the money to improve they lifestyle, who will now need to cut back
people who cant afford to have babies should be responsible and not have them..scrap child benefit
its not about needing it...the rich pay in...what about those that will never pay in and keep breeding future parasites...is that also fair on the tax payer,now and in the future when we have to pay for the offspring breeding...think not
It has to start somewhere. Why cant the better paid stand on there own 2 feet? I know circumstances are different in each household, but the government have to cut back on the huge welfare payments currently being paid out!
What do you suggest robbie, sterilize low paid woman.or maybe youd prefer to have their offspring terminated at two weeks.
No Shaun,just do not pay for people to keep breeding. If they realise that the benefit will not increase even if they keep on having more children then sooner or later the penny will drop and they will realise that the game is up and if they want large families then it is down to them to actually fund it,not the rest of us.
Robbie Should we also be giving those on high salaries housing benefit - after all they have paid in.
Good about time to if you carnt afford them don't have them sick of paying for all these chavs having kids for a free house and benefits
But Nick this isnt about the 'chavs', this is about the better off (note I didnt said rich!) having a benefit removed that they may not particularly need! Got to stop these huge benefit payments going out when the country cant afford it!
And stop foreign aid
A farier system would be Allowance for the first two to stabalise the population. Then nothing for any more, as by that time you would know how much it costs. The injudice of stopping it for 40% or 50% tax payers while people on dole can replicate till thier hearts content or until they are Pension age and will not be required to work means that the population be be dominated by a lower order of being.
Saying the last two comments is very comservative seems tame.the word fascist is more appropriate
I dont mean your comment eric.but two before you
Why is it that people who claim benefits are automatically labelled 'chavs'?I have had a part time job for more than 4 years but my hours keep going down.My partner can't find work at all.I claim Child Benefit and Child Tax Credit,but what some people don't seem to realise is that we need to feed ourselves and clothe our son.If only we had enough spare cash to go out partying!
.If only we had enough spare cash to go out partying! at tax payers expense?
I think peaple mean the long term unemployed helen.but yes the word chavs is very insulting to the unemployed through no fault of their own have found themselves jobless.its steriotyping at its worst helen.
Youve certainly got the wrong impression of the unemployed micheal.peaple arent going partying on benefits. Simply cant afford to.you try getting by on £70 a week.theres a challenge for you.lol
I'm puzzled - why are the Labour party totally against this? People on £60k abd above are the group they want to raise more taxes from. I can only put this down to Millibands complete stupidity and the Labour party's complete lack of policies. God help anybody in this country if and when they return to government.
Good about time sick of this kids having kids society for benefits and houses to get out of working. This is the reason the country is in such a state all the freeloaders wanting handouts
Your stereotyping too much and insulting the unemployed and their children(chavs) this is uncalled for.debate on here, you may disagree but theres no need to be insulting nick.
I see now shaun that nobody can comment on a certain subject here now directly due to this mans remarks earlier.that was seriously bad what he said.my neighbours have made a complaint to the moderators about it.
Yes i know jane.ive noted the comments page you mean.im just surprized orange left it on for so long.lets hope he realizes what hes done.although i believe a lot of peaple on here might have seen it and wont condone it.