Child Benefit should be limited to no more than four children per family to help cut welfare spending, say Policy Exchange.
A report by the centre-right think tank has recommended limiting child benefit for larger families. The move could save around £1 billion over the course of a parliament, say Policy Exchange.
Policy Exchange is said to have close ties with the Conservative Party and was founded by a group that included Michael Gove, Francis Maude and Nick Boles. Many of the past recommendations made by the think tank have been adopted into tory manifestos.
If this new policy is adopted, it would see child benefit progressively cut for each child born into a family, and rise by no more than 1% each year over the five-year course of a parliament.
Parents would initially receive £21.50 a week for their first child, £14.85 for the second child, £14.30 for the third and £13.70 for the fourth. Payments would be limited to no more than four children per family. Supporters of the policy claim it would help deter immigrant from coming to the UK to claim benefits for their children.
Policy Exchange said that a YouGov poll, commissioned by the think tank, found that 67% of voters would support cutting child benefit for larger families. 20% were opposed to the move.
According to the results of the poll, the proposal is supported by 83% of Conservative voters, 63% of Liberal Democrat voters and 55% of Labour voters.
The Conservatives have previously considered a similar proposal put forward by Nadim Zahawi to limit child benefit to just two children, but decided against the policy out of fear it would cost the party votes.
The author of the report, Steve Hughes, said:
“The chancellor has suggested that annual welfare savings of £12bn will have to be found to avoid further and faster cuts to departmental budgets.
“Choosing where this money comes from is not easy, but with such high levels of public support, capping child benefit at four children and redesigning payment levels offers a very real opportunity to generate some much needed savings in the fairest way possible.”
A spokesperson for the right-wing pressure group, Taxpayers Alliance, told the Daily Express:
“No one should be immune from having to make the sometimes hard choices associated with having a family and people have to realise that there is not a bottomless pit of money.”
Opponents argue that the tory-led coalition government has consistently targeted Britain’s poorest households with draconian welfare cuts, while continuing to allow multinational companies to escape paying their ‘fair share’ in tax and handing tax cuts to the highest earners, who could afford to pay more.
They also say that there has been far too much focus on cutting state benefits, rather than introducing a living wage to help parents cover the cost of living and raise their own children, instead of having to rely on benefits to top-up stagnating wages.
Figures released by the Office for National Statistics (ONS) yesterday (17 June) appear to support such an argument. ONS figures show that average pay has increased by only 0.7% on this time last year, or just 0.3% excluding bonuses – well below inflation which currently stands at 1.9%.
A Survation poll for the union Unite, found that over a third (34%) of low wage earners cannot afford to shop where they work and nearly sixty percent of workers earning £6.50 or below (58%) feel trapped in low waged work. 79% of respondents said that they want work to pay and want to earn a living wage instead of depending on benefit top ups.
Welfare News Service requested a comment from the Child Poverty Action Group (CPAG) on how limiting child benefit would impact upon child poverty figures. Unfortunately they did not respond in time for publication.
Source – Welfare News Service, 17 July 2014
This article was written by Patrick Wintour, political editor, for The Guardian on Wednesday 18th June 2014 21.00 UTC
Ed Miliband will set out Labour’s first plans for cuts to the welfare system, ending out-of-work benefits for roughly 100,000 18-to-21-year-olds and replacing them with a less costly means-tested payment dependent on training.
The move is designed to symbolise Labour’s determination to reform welfare, making it more closely linked to what people pay in, as well as cutting the benefits bill.
> More closely linked to Tory policy more like. What odds on a Con-Lab coalition after the next election ? They might as well – the differences between the parties seem to have now completely vanished.
“Britain’s young people who do not have the skills they need for work should be in training, not on benefits,” the Labour leader will say. It is essential to reform welfare to bring down a “wall of scepticism” among voters who don’t believe that politicians will make the system fairer, he will argue.
> So does “reform” always have to mean “make life more difficult for those worst off” ?
Miliband’s move reflects a recognition of anger among some voters that some people are getting “something for nothing” out of the welfare system. A YouGov poll for the Institute for Public Policy Research (IPPR), the leading centre-left thinktank, published on Thursday, finds that 78% believe that the welfare system is failing to reward people who have worked and contributed to it.
> Really ? Is it supposed to be a reward ? Are these people confusing benefits with investing money in stocks and shares or something ?
The removal of jobseeker’s allowance (JSA) for those with skills below level 3 would affect seven out of 10 of the 18-to-21-year-olds currently claiming JSA, and initially save £65m.
Miliband will reveal further plans to make welfare more conditional by linking benefit payments to national insurance contributions.
Under his plans, people would only be able to claim the higher rate JSA of £71 a week after they have paid National Insurance for five years, instead of the current two. The contributory element of the welfare system has been eroded in Britain and is much smaller than in most European economies.
Labour officials said the switch in spending by abolishing JSA for young people was not designed to be punitive, but to incentivise them to train. The longer qualifying period for higher-rate JSA will mean those who qualify will be able to receive additional help worth as much as £20 to £30 a week, they added.
The Labour leader, struggling with poor personal poll ratings, will be responding to a major report by the IPPR setting out as many as 30 radical measures to rebuild public faith in politics and public institutions in an era of austerity.
Two separate polls sent further dire messages about Miliband’s personal standing, with one poll by Ipsos MORI showing a small majority of voters wanting him replaced as party leader, and another by YouGov claiming voters would be more likely to back Labour if it was led by his brother, the former foreign secretary David Miliband.
Miliband will argue that any reforming politician must deal with doubts about the ability of politics “to address the long-standing pressures on work, family and people’s sense of fair play that has been piling up for decades”.
He will admit one reason for such scepticism is that “people think the problems are huge, but they don’t believe they can be solved because of the financial problems the country faces. Many people think that in hard times, politicians’ promises are all hot air.”
But big reforms need not require big spending, he will argue. “Our country continues to confront a fiscal situation the like of which we have not seen for generations, the result of a financial crash the like of which none of us has ever seen,” he will say.
“We cannot just hope to make do and mend, and we cannot borrow and spend money to paper over the cracks.”
Writing in today’s Guardian, the IPPR’s director, Nick Pearce, goes further, saying: “Gone are the days when economic growth could generate enough resources to redistribute income without making painful choices. Even with a different economic agenda, there is little prospect of any government elected in 2015 spending its way to greater equality.”
Pearce urges Labour to reject a business as usual path in which the government “would tax a little more and cut a little less, leaving the architecture of the state untouched and the current framework of services and social security in place”.
Miliband will also back proposals for local councils to be given more control of the ballooning housing benefit budget. The report suggests the housing benefit bill will reach £25.4bn, with real terms rises expected for the next five years.
Miliband argues the IPPR report shows that even when there is no money to spend radical reform can be started in the fields of health, child care, welfare, social care and housing. But he is going to be cautious about embracing some of its specific plans drawn up over the past 18 months, including a £2bn child care package, funded through scrapping plans for a marriage tax allowance, freezing child benefit and reducing pension tax reliefs.
The report also argues that there needs to be a switch of government resources from tax transfers and credits to delivering services, something that might require abandoning the expensive target to eliminate child poverty.
It will also propose a radical devolution of power to local councils, including over housing benefit and welfare to work for the disabled. In probably the biggest proposal, the IPPR will argue that the left has to restore the contributory principle in the welfare system. Pearce argues social security for the unemployed has become a liability for social democrats. Turning the issue into a source of strategic strength will require rebuilding the reciprocity that underpins it, restoring the contributory principle and giving new life to the idea of national insurance. “Fiscal constraints should lead us away from means-tested residualisation of welfare, not further towards it”.
There is frustration among some Labour policy leaders at Miliband’s reluctance to embrace more of the report, designed to show how the left set out a redistributionist agenda in the post-crash world. It has had the support of Jon Cruddas, head of the Labour policy review.
> Well, that’s it then. Labour continue to piss all over the very people who were originally their electorate. If anyone still had any belief that they were the People’s Friend, this should finally disabuse them.
Source – Welfare News Service, 18 June 2014
Nigel Farage is due in Tyneside this week as Labour prepares for a battle for its heartland.
The UK Independence Party leader is speaking at a party event at the Sage in Gateshead as polls continue to suggest Mr Farage will see a North East MEP elected in this May’s Euro poll.
UKIP are threatening to take working class votes off Labour across the North amid speculation the party has maximised the amount of support it can take off the Conservatives.
Mr Farage, in the region on Wednesday, has seen his party rise to second in many polls looking at voting intentions for the European elections.
With him will be North East Euro candidate Jonathan Arnott, who pointed to one YouGov poll which had UKIP on 33% compared to Labour’s on 37% across the North.
He said: “Polls have been confirming what we’re seeing on the doorstep across the region, that UKIP are within touching distance of winning here in the North East. If these polls are to be believed, we’re not far from beating Labour and actually taking two of the three North East seats.
“Our message of being good trading neighbours with Europe and the rest of the world is going down well, and as the Farage-Clegg debate showed, Labour and Lib Dem scaremongering about threats to jobs is hollow.
“We are the party of rebuilding our trade links with the Commonwealth and developing links with emerging global markets – something which would boost the economy and create jobs.”
UKIP yesterday had to defend a new immigration-centred election poster campaign as “a hard-hitting reflection of reality” after it was attacked as “racist” by political opponents.
The anti-European Union (EU) party is using £1.5m of funding from millionaire ex-Tory donor Paul Sykes to launch its biggest-ever publicity drive ahead of European Parliament elections on May 22.
To be displayed at hundreds of billboard sites across the country, they carry stark warnings that “British workers are hit hard by unlimited foreign labour” and that 26 million unemployed people across Europe are “after” UK jobs.
Others complain that 75% of British laws are made in Brussels and that UK taxpayers fund the “celebrity lifestyle” of EU bureaucrats.
> As opposed to the celebrity lifestyle and general abuse of the system by those in the British parliament ?
Mr Farage said: “These posters are a hard-hitting reflection of reality as it is experienced by millions of British people struggling to earn a living outside the Westminster bubble. Are we going to ruffle a few feathers among the chattering classes? Yes. Are we bothered about that? Not in the slightest.”
Source – Newcastle Journal 22 April 2014