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Thread: UK To means test child benefit

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    Default UK To means test child benefit

    The UK will not pay child benefit to earners above £44,000 a year, from 2013.

    Any chance of FF/Greens doing something similar here?

    The Chancellor said Britain can no longer afford universal benefits for the best-paid as it battles its budget deficit.

    So from 2013, no household where anyone earns more than £44,000 a year will be eligible for child benefit.

    "For higher rate taxpayers, we're going to withdraw this," he told ITV's Daybreak. "It's a tough but fair decision."

    He added: "It's just not fair to ask someone who's on £15 or £20,000 a year to be paying for the child benefit of someone who's on £50,000 or even more."

    "At any other time, I wouldn't do this. But Labour left us with a heck of a mess."

    The Government is also looking at cutting other benefits that currently aren't means tested including winter fuel allowance, and free bus passes.
    Child benefit to be withdrawn from middle classes - Telegraph
    We have turned the corner.I commend this Budget to the House. Brian Lenihan, 9 December 2009

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    Politics.ie Member seabhcan's Avatar
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    They talked about this last year but decided against it. Said it would require a change in the law (why the government was unable to change the law, I'm not sure)

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    Bazza Andrews just on Newstalk says we need to "look at" child benefit payments in Ireland.

    Says 2013 is 3 or 4 years away (?)
    We have turned the corner.I commend this Budget to the House. Brian Lenihan, 9 December 2009

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    Politics.ie Member HarshBuzz's Avatar
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    good, we should do it here too!

    I'd lose 3600 p.a. if this was means tested but it seems like the fair thing to do - middle class families should not get this SW handout

    bang, good saving there straight away.

    Next on the block = all forms of property related tax relief
    “'retail deposit flight, I don't see that as a great danger. Ireland is an island” - Brian Lenihan - to hundreds of international investors

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    Jesus, all I need to hear this morning. Some one on 15k isn't paying my Child benefit, I am, out of my own tax take. After the benefit, I pay 19% tax.

    It's also going to cause people to withdraw their children from childcare if you are within a certain band, as it will be more worth you while to stay at home. Then more jobs are lost in the childcare sector, and a certain proportion of the worker leaving jobs will not be backfilled. So, more people availing of benefits and even less tax take.

    Finally, the UK also have good free healthcare system in the NHS, and properly subsidised childcare. If I can have both those, maybe I could manage this.

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    Politics.ie Member gijoe's Avatar
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    It will not happen here because we just do not have the integrated tax and social welfare systems to do it. Plus it would act as an incentive to the self-employed to keep their incomes artifically low. I know that if I was earning in excess of €50k pa as a self employed person with 3 kids that I would cut my income in order to receive close to €6k pa in tax free money from the State.

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    Whatever about means testing, the 3rd and subsequent child shouldn't get more than the first and second as is the case now.

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    The problem here is that because it's so generous, withdrawing it suddenly will push a lot of (otherwise productive) families over the edge. It'll have to be part of this 4 year framework business, where it is changed gradually.

    The UK proposal (as reported this morning) is ridiculous though. A single cutoff at the high rate of tax creates an absurd anomaly where lots of people will be looking for salary cuts to get below the threshold.

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    Politics.ie Member HarshBuzz's Avatar
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    Quote Originally Posted by orbit View Post
    The problem here is that because it's so generous, withdrawing it suddenly will push a lot of (otherwise productive) families over the edge. It'll have to be part of this 4 year framework business, where it is changed gradually.

    The UK proposal (as reported this morning) is ridiculous though. A single cutoff at the high rate of tax creates an absurd anomaly where lots of people will be looking for salary cuts to get below the threshold.
    I'm sure it's not beyind the wit of the extremely well-paid mandarins at the DoF to work out a solution

    the principle should be this though; middle-class families should not get SW handouts. SW handouts should only go to those that really need them. Start from that point and work out the details.
    “'retail deposit flight, I don't see that as a great danger. Ireland is an island” - Brian Lenihan - to hundreds of international investors

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    Won't work. It should be done on a case by case basis and staged, not completely absolute on £44,000. Somebody earning £43,000 with children has no incentive to be more productive and earn more and that creates a double negative for society.

    A couple earning £50,000 could be poorer than a couple with £20,000 if they are top heavy on debt obligations.

    its just another example of the statist agenda to push us further down the road to serfdom.
    “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” - Friedrich A. Hayek

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