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”
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.
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.
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.
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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