I’m a typical working mother, with 2 children who has to work overtime when it’s required and sometimes that pushes me over the Higher Rate Tax (HRT) threshold which is currently 44K. Under the proposed cuts I stand to lose child benefit payments.
Other couples with a family income of over 44K up to 87K will still get their child benefit as far as individually they pay tax at the basic rate i.e. earn less than 44K each.
- I’m aghast that this is being sold as ‘fair’ as anyone with a brain and a calculator can see it’s not.
- It’s hasty, for a possible saving of £1billion per year, we may end up spending more than that just to get it ready for 2013.
- The Child Benefit is the only benefit paid directly to mothers, it also includes NI contributions which count to the state pension. For many stay-at-home mothers this represents the loss of the only income they get directly. The marriage tax break can not compensate for that.
- For lone-parents this is an absolute disaster, especially where they have young children and massive childcare costs (easily £650 per child in the South!) Plus lone-parents don’t qualify for the marriage tax break either.
I see the necessity in cutting spending and benefits however, HRT payers have lost out on Child Tax Credits, Child Care Vouchers, Child Fund payments already. All I’m asking for adequate means-testing based on family rather than individual income and a decent threshold over which Child Benefit will be withdrawn. Means-testing is already in place in the Tax Credits system so that’s a good place to start!
If this affects you, or anyone you know, or you’re just for the government being thorough and fair please sign the petition below!
20th October 2010: The government as part of the spending review announces cuts will actually save 2.5billion per year rather than the 1billion previously estimated. This may be partially because the HRT bracket is being lowered from 44K to just over 42K!!! 800,000 more people will now find themselves in the HRT bracket from April 2011!