Child Benefit and recent ILR

I have just been issued my ILR (kind of, they told me it was approved but I don't have it in my hands yet). I also gave birth to my first child on Feb 1st. My MIL was talking the other day about Child Benefit and when we would start claiming and things like that. She seemed to think I was being crazy when I said that we really didn't need it, and encouraged us to apply for it regardless. I am wondering what other people have done in this kind of situation. Did you apply as soon as you could? Did you wait until you "needed" it? It feels a bit wrong to me to go applying for benefits that I wasn't even elegible for a few weeks ago.

Oh...I am going to say this is more of a question of integrity.

If you don't really need it-leave it. That is since you are asking for opinions. 

I am really adamant about taking funds. There was a time when my son and I were on welfare in the US. The moment I had a job and could take care of us-I did.

If you have heard the news recently-then you will know that there are going to be some serious and swift changes coming in this realm.

Oh-and congrats on your new baby!!!!

If you don't need or want it then don't claim (but you're entitled to it). What you could always do is claim and put it in a savings account for your child for their future education or needs if your situation changes.

We did claim CB, as we did need it at the time.

Child Benefit isn't income-based, so I think something like 98% of people who are eligible (ie people with kids) claim it, which is probably why your MIL was surprised that you hadn't applied.  Personally, I believe that people who don't need it shouldn't claim it, and more funds should be available for those who do need it.  But the fact is you are eligible and it is up to you whether to claim or not. 

Worth pointing out that Child Benefit is not a needs-based benefit.  It's available to all native Britons & those with ILR who have 1 or more children - the amount varies depending on the number of children, the age of the children & whether older children (ages 16-20) remain in full time education or not.

I think Weby's suggestion about banking it for future education (if you don't need it now) is a good one.

It's probably going to be cut or reduced along with everything else - apparently, higher-rate taxpayers will not receive this benefit from 2013.  There may be other changes too.

cross-posted historyenne

I don't really see why a person wouldn't claim it.  If you were doing your taxes in the US, would you not claim the exemptions to which you are entitled (for being married, children, household, etc) - because you didn't need that tax money?  If not, then fair enough.

I like the suggestion of banking the money for the little man's education, I suggested it the other day during our conversation and my MIL thought I was crazy for that too. I don't know what she wants us to do with it though, he's got cloth diapers and breast feeds so at the moment he's pretty cheap--or, at least, the cost is my sanity

It's really interesting to hear people's different opinions on this!

I think Weby's suggestion about banking it for future education (if you don't need it now) is a good one.

Ta MrsR...I think it makes good sense as Child Trust Funds went away last year for new births so it would (more than) make up for it at £81.ish per month.

I agree with Webys suggestion.  I don't *need* the child support money I get for my daughter so we put a large majority of it directly into her savings (and use what's left over to go towards buying her new clothes or more expensive birthday presents or whatever).

I also agree with Mrs. Robinson's comments...you wouldn't tell the United States IRS to keep your $5,000 refund because you didn't need it.  Basically look at Child Benefit as the tax break you would get in the US for claiming Earned Income (or whatever the one is you get for having kids)...except you receive it once a month instead of in a lump sum when you file your yearly taxes.

Oh! Then I want to change my answer! LOL! Thanks for enlightening me all. I didn't realize it was more of an actual benefit.

I don't know where I got the idea it was different.

 

I don't really see why a person wouldn't claim it.  If you were doing your taxes in the US, would you not claim the exemptions to which you are entitled (for being married, children, household, etc) - because you didn't need that tax money?  If not, then fair enough.

I'm mostly looking at it from my own perspective as someone who is thinking hard about trying for a child but can't quite justify it financially.  If I left my job, even claiming all the benefits I could (statutory maternity, child benefit, housing and council tax benefit, child tax credits) it still wouldn't be as much as the fairly paltry sum I currently earn.  However, if I were working, all we'd be eligible for is Child Benefit, which wouldn't be enough to pay for childcare, so ultimately we'd still be worse off plus I'd have to work my ar$e off to pay someone else to take care of my child.  I tend to feel that if people who didn't need CB didn't claim it, then perhaps there'd be more for middle-class working people like us, to help us actually afford a child.  That's probably not true, but it's my visceral reaction whenever I hear about someone on £80,000 pa who claims CB.    

That said, I also like Weby's idea of putting it into a savings account.  

You absolutely need the non-US parent (if their is one) to claim this so that no-one misses out on Carers' Credits ( http://www.pensionsadvisoryservice.org.uk/state-pensions/national-insurance-credits ).

The reason I say the non-US parent is of course our old friend, the IRS.  If a US person received child benefit, the health in pregnancy grant, UK child tax credits or a UK child trust fund then all kinds of extra data needs to go to the IRS (plus possibly payment of tax) so it is easier to avoid the hassle if you can.

The reason I say the non-US parent is of course our old friend, the IRS.  If a US person received child benefit, the health in pregnancy grant, UK child tax credits or a UK child trust fund then all kinds of extra data needs to go to the IRS (plus possibly payment of tax) so it is easier to avoid the hassle if you can.

This is what my husband & I did, I have NOTHING in my name in the UK, no bank accounts, no income of any sort & no benefit payments of any sort...so I never have had to file any sort of returns the whole time I've been here.