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Child Benefit and other tory cuts....

Not mentioned here as yet so I will start the ball rolling inc an extract from my post to the Chiswick site...Universality was at the core of the welfare state, you do not need to apply, ensuring full take up and cost effectiveness. CB is one of the last simple benefits. Or was, tories now say they will limit it where a family member pays higher rate tax. Have to make cuts they say and this will be fair. I have to declare an interest in that I do not believe in 'the cuts' as the coalition present them. Monetary ideology drives this lot, not economics and we are heading for a serious recession as private/public sector job losses impact on demand and spend. The CB cock up is symptomatic of policy made in a rush without joined up thinking, even more so with today's news about a taxbreak for the married higher tax payers, a panic response to the Daily Mail editorial/readership. Other anouncements are equally unworkable, £26k cap on benefits? What happens to the thousand's of homeless families living in Private Sector leasing properties where HB pays a market rent to a landlord so the landlord can pay their mortgage because under right to buy millions of council homes were sold. Prisoners working 40hr weeks, when most are currently locked in their cells 22hrs a day as there are not enough prison staff to supervise and little resource given to education and rehab. Conference soundbites for the devoted, not achievable policy. CB will be the first of the tories attack on the welfare state, wait to see what is next as they dare to out thatcher, Thatcher. Yes Minister would have a field day......'A brave decision Minister'Welcome to Cameron (with boy Clegg) land.......

Iain Muir ● 5827d15 Comments

Anne is spot on. Child benefit is not about the parents; it is about the child, or children. It works on the principle that, irrespective of the circumstances of the household in which a child grows up, the state will underpin its welfare by an allowance, paid typically through the mother. All discussions to date about ending the universal nature of the benefit have ultimately foundered on the question of how one can ensure that no child who need it goes without. What no one expected was a proposal that makes no claim to achieve that end, and instead positively rattles with anomalies and inequities. Legislation often has unintended consequences, but all of this is screamingly obvious well in advance.The disparity between households where two people earn £43k and get the benefit, and those where one breadwinner earns £44k and doesn't, has been highlighted elsewhere. There are others: this proposal creates a minefield in the area of income and marginal rates of taxation; what does a single parent of three earning £43.5k do when offered a pay rise of £500? The effect would be to gain £500 of taxable income, but lose over £2400 of tax-free income. It's regressive taxation gone mad.Are they stupid? Tempting to say, but realistically, no. Do they think we're stupid? Again, I think not. No, this appears to another example of their strategy of chopping up society into the deserving (eg married people) and undeserving (eg public sector workers, single parent households, the unmarried, the unemployed, the sick - oh, and immigrants, obviously). They then make the assumption that, as a majority of us are not in any single one of these categories, we're happy to see them given a kicking. I hope we're above all that, although I'm starting to fear otherwise.

Steve Donnelly ● 5826d