Support for children likely to go in first Lib-Con cuts

The Lib-Con government will start cutting spending in 2010-11. This could include cuts to Child Tax Credits and the Child Trust Fund.

The Liberal Democrats have agreed to cut £6 billion in 2010-11 as part of the compromise agreement with the Conservatives. This is likely to include cuts to Child Tax Credits and the Child Trust Fund.

The Guardian reports today that:

“the Lib Dems accepted that spending cuts will start this year as part of an accelerated deficit reduction plan.”

In February, Philip Hammond told Channel 4 News:

“We have been very clear about this. In addition to cuts in child trust funds and child tax credits we will cut the government advertising budget.

“So for 2010, it is absolutely right to add savings from the reduction in the advertising budget to the savings in trust funds and tax credits”.

“We can save £1bn-£1.5bn from those three measures.”

Although the Liberal Democrats were previously opposed to cuts in 2010-11, their manifesto set out that they would make savings by “restricting tax credits” and “ending government payment in Child Trust Funds”. The Conservative party manifesto outlined that the party would “stop paying tax credits to better-off families with incomes over £50,000” and “cut government contributions to Child trust funds for all but the poorest third of families and families with disabled children”.

During the election Labour contended that a Conservative government would, in fact, have to cut child tax credits for those earning over £31,000 in order to make up the numbers.

UPDATE 14.47:

The coalition negotiations agreement confirms that, “The parties agree that reductions can be made to the Child Trust Fund and tax credits for higher earners.”

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27 Responses to “Support for children likely to go in first Lib-Con cuts”

  1. Emma Liddell

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  2. SSP Campsie

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  3. John Blackmore

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  10. John Blackmore

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  11. norbert

    well, money has to be saved somewhere. you’ve spent 10 years bribing people with their own children’s money to vote for you and brought the country to the edge of the economic abyss. just thank the people who come in to clear up the mess.

    i actually was happy when Labour got in and GB gave the BoE independence in setting interest rates. i thought the Labour party had finally grown up. what a joke that turned out to be.

  12. Steve

    And about time too. The last thing we need in this country is an even higher population. So its time to stop paying people to have more than 2 children.

    We should also stop family allowance for the third and subsequent child, starting with children born from April 2011 onwards, to cushion those already existing.

  13. Fat Bloke on Tour

    Interesting to see how the move to a £10K personal allowance is handled by the media. As noted before the policy works quite well for most of the electorate but does little or nothing for the bottom 30%.

    People on low pay, no pay or limited hours will see little benefit from this change but add in another wage earner into the mix and the cutbacks to the Tax Credit system will hit hard.

    The change will be harder on those with low incomes and redistribution in general than the 10p tax debacle.

    The big diffence will be that GB / AD did a lot of good on the issue of low incomes and the 10p tax issue was their only failure, the new establishment dog boilers are forgetting about the poor from the very start.

    Waiting for the Grauniad editorial on this before I tear up my subscription.

  14. norbert

    @fat bloke

    agreed, this tax cut does little for those out of work. for them it is important to get them in to work. we have 5.5 million on out of work benefits. they simply cannot have middle class lifetsyles. there isn’t the money. if there was only 1 million of them then fair enough

  15. norbert

    @will straw

    you have a big opportunity to be a great blog that isn’t supporting the incumbent. please don’t just scream ‘tory cuts’.

  16. Moments of Light and Dark « @Number 71

    […] agreement to be published in full – that may offer clues. But few voters will forgive cutting support for children in exchange for an elected Lords.  The Guardian’s leader today begins to back-track on its […]

  17. Anon E Mouse

    Will – I was disappointed to see Alan Johnson not standing for leader but I’ll give David Miliband a second look. Watched an old Politics Show on Sky+ and he seems quite humorous which is really something the left is lacking and perpetuating the po faced aspects of Labour does not help win people over.

    You need to get the left to unite against the likes of Ed Balls and any of that bunch of Browns inner circle of cronies because you need to ensure a Labour Party that people actually want to vote for and one that isn’t complacent about getting back into power.

    My advice is not to lurch to the left and I agree with norbert above about the somewhat hysterical screaming from certain articles on this blog should really be toned down – keep a firm hand on the reigns of other moderators I say and things should be ok.

    Brown has rightly gone – he lost the election. LFF should now do everything it can to encourage full transparency in the election of a new leader of a once proud party and then things can only get better.

  18. ruby

    Support for children likely to go in first Lib-Con cuts | Left …: The Lib-Con government will start cutting spen… http://bit.ly/duplU5

  19. Will Straw

    Thanks for the comments.

    I can guarantee to both Anon and norbert that we will not take a kneejerk reaction to every piece of Government policy. There is a clear need for tax rises and spending cuts in addition to a clear strategy of how to get Britain growing again and we will examine what is presented before making a judgment. We wrote frequently about child tax credits before the election and the case for preserving them so it seemed appropriate to focus on this today.

    As to the Labour leadership race, as I will outline in a blog later, we’re going to stay above the fray and help frame the debate.

    All the best,

    Will

  20. Bruce Lesley

    Support for children likely to go in first Lib-Con cuts | Left Foot Forward: http://bit.ly/aNxRwB: Elections matter for children

  21. Fred

    Whatever cuts and tax rises are coming are Labour’s fault so don’t call them Lib-Con cuts. Labour made this mess by running up large budget deficits when the economy was booming.

    Every single Labour government has left office with higher unemployment than when they entered office and with the public finances in a complete mess. Once again someone else has to clear up the mess, but to blame the cleaners for the mess is frankly insulting.

  22. norbert

    @Fred

    you are so right.

    now, after this phoney war I wonder if there’ll be any debate about where the cuts should apply. I’m in favour of an immediate across the board cut to remove the structural part of the deficit and if the economy still needs some fiscal stimulus above that given by the cyclical deficit then cut taxes/raise threshholds. After that I’d say any job advertised in the Guardian, social workers (give the remit to the police, the social workers seem to just stand by and watch as children are murdered), PCSOs, welfare benefits to those with criminal records etc etc. Plenty of opportunity

  23. Anon E Mouse

    norbert – Not all social workers are the same dude – even those in child protection. (I had to say that!)

    Will – You came across very well on the BBC on Saturday. Are you going to upload the footage you took whilst outside the Lib Dems HQ?

    The news on Miliband is good…

  24. norbert

    i knew a social worker once. he referred to the alcoholics he had to treat as his ‘client base’. he wanted that base to be bigger because that was his job justification. he’d have been mortified if one of them had actually given up the booze.

    I am hoping for a Milliband (the creepy rather than just odd one) versus Ed Balls.

  25. Anon E Mouse

    norbert – An awful lot of child protection social workers I know are Lib-Dems or Tory. Most consider they have been let down by the systems they have to work in. There needs to be some punishment in this country for wrongdoers and then things might change.

    What currently happens in this country is that poor peoples children are taken off them to be given to richer people and Labour accelerated that bad idea big time I’m afraid.

    Neither colour of government has a good record where social services are concerned I have to say.

    I’m no great fan of either of those Milibands and wish people had actually done a real job before entering Parliament but if it can’t be Johnson or Straw or Reid or people of that ilk then David is OK I suppose.

  26. norbert

    @anon

    what about ed balls? miliband is no labourite, a lib-dem at best. why not return to real labour values? what about re-instating clause 4? without it there’s no reason for the existence of the labour party. blairism was a failed experiment that only worked when they were winning elections

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