U-turn on childcare cuts: is the coalition waking up to its women problem?

Ministers have rightly backtracked on a regressive cut aimed directly at working women.

Sooner or later something had to give. And today it has. Following much speculation the government has finally announced a change in its planned cuts to childcare, a key area of concern for many working mothers (and fathers). The recent heat about fast falling support for the coalition among key groups of women voters is starting to take its toll.

So £300m has been found to ensure that more part-time workers can claim tax-credit support for childcare without necessitating a further cut in provision for existing claimants. Up until now there had been widespread fear that any extension in support for part-timers would mean yet another cut in childcare support for everyone else.

To get perspective on these changes requires some background. Under Labour those parents on low and modest incomes working more than 16 hours a week were eligible for support covering 80 per cent of their childcare costs. Last April the coalition cut this support to 70 per cent. That may sound a small change - it isn't. It meant a major hike in the share of childcare costs low-income working parents have to pay. On average this has translated into a £450 loss for half a million parents, with some losing a staggering £1300.

Since then there has been much well informed speculation, based on meetings between ministers and children's campaigners, about another significant reduction in support for working parents currently claiming childcare support (as part of the move to towards the Universal Credit). The implications of this further cut were going to be devastating for many families, as lone parents and second earners - overwhelmingly women - would have been left with little if any incentive to work more than a few days a week.

Today's announcement removes this threat. Importantly, it extends for the first time eligibility for childcare support to those working less than 16 hours a week, without any offsetting cut for other parents to pay for this. This is genuinely good news for many families struggling on low incomes looking for slivers of work to help make ends meet. What it completely fails to do, however, is reverse April's cut.

For those involved in the technicalities of this policy debate, today's news feels like a bit of a victory - something awful has been averted and something positive secured. That's why there has been a fair bit of relief, and positive reaction, to the announcement. But for working parents already claiming support, still smarting from April's cuts, there isn't going to be any gratitude. You don't get prizes in politics for avoiding making a bad situation worse. In fact the money made available today almost exactly matches the cut made in the spring. The net result has been a shift in support away from those working more than two days a week, towards those working less than this. And this extra money comes from the £2bn set aside for introducing the Universal Credit; we don't yet know what else this money might have been spent on.

And let's not forget that, particularly following April's cut, the system of childcare support has some truly miserable features. Donald Hirsch, the leading welfare expert, has pointed out that someone on the minimum wage weighing up whether to work an extra hour will keep only about 35p of the extra £6 they earn (once they take account of additional childcare costs, the extra tax paid and reduced tax credits). Work hardly pays.

Today's shift on childcare is, nonetheless, significant in that it represents a clear decision to back-track on what was going to be an incredibly regressive cut aimed directly at working women. It also reveals something of the internal discussion going on within the coalition.

Above all it confirms that they have been rocked by recent polling showing plummeting support amongst female C2 voters, as well as other work by campaign groups showing how severely childcare costs are hitting family living standards. In the face of these concerns, abstract apologies from David Cameron to women voters were never going to suffice.

It also reflects the fact that Nick Clegg, who absented himself from debates on welfare and work for too long, has woken up to the fact that what was happening on childcare made a total mockery of his claim to champion 'alarm clock Britain'.

On closer inspection his team realised that further cuts would have risked the death of full-time work, or anything near full-time work, for women in low-income families relying on tax credits to pay for the childcare they need to hold down a job. This is obviously a major economic issue - but it's a massive electoral and gender one too. The Liberal Democrats, who were disproportionately reliant on female votes last May, realised during the summer that they couldn't sit this one out. Over recent weeks Clegg forced the hand of IDS and George Osborne and vetoed the idea of the announcement being made to the Tory faithful in Manchester this week.

Less easy to discern are the other changes this new found concern with working women might result in. Many expect a watering down of the coalition's proposed axing of Child Benefit for all higher rate tax-payers in 2013, though pressure for this will come from Conservative backbenchers (worrying about the impact on middle income stay-at-home mothers) rather than the Liberal Democrat leadership. Another flashpoint is likely to be the new and severe charging regime for parents using the Child Support Agency.

Either way the coalition's woes with working women on low-to-middle incomes are set to grow not diminish. The wider economic, fiscal and social forces underpinning them are hardly going to be reversed by one announcement on childcare. But at least today's announcement was more than warm words. And that's a step forward.

Gavin Kelly is a former adviser to Downing Street and the Treasury. He tweets @GavinJKelly1.

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Interview: Momentum’s vice chair Jackie Walker on unity, antisemitism, and discipline in Labour

The leading pro-Corbyn campaigner sets out her plan for the party.

As Jeremy Corbyn’s supporters celebrate after his second win, Jackie Walker – vice chair of the pro-Corbyn campaign organisation Momentum, a Labour member and an activist – talks about the result and the next steps for Labour’s membership.

Walker is a controversial figure in the party. Her history as a black anti-racism activist and advocate for Palestine, and her Jewish background on both sides of her family, did not keep her from being accused of antisemitism for a February Facebook post about the African slave trade. In May, she was suspended from the Labour party for her comments, only to be reinstated a few weeks later after a meeting of Labour’s National Executive Committee.

Anger was reignited at an event hosted by Momentum that she spoke at during Labour party conference, on whether Labour has an antisemitism problem. Walker said the problem was “exaggerated” by Corbyn’s critics, and used as a “weapon of political mass destruction” by the media. (We spoke to Walker before this debate took place).

After a summer plagued by suspensions of Labour members, accusations of hateful speech on both sides, and calls for civility, Walker discusses what steps need to be taken forward to help bring the party together.

Jeremy Corbyn spoke in his acceptance speech about wiping the slate clean and the need to unite the party. What steps can members from all sides take to unite the party?

I think people have got to stop using antagonistic language with each other, and I think they’ve got to stop looking for ways to undermine the democratic will of the membership. That has now been plainly stated, and that’s even with something like 120,000 members not getting their vote because of the freeze. He has increased his majority – we all need to acknowledge that.

Is there anything that Corbyn’s supporters need to do – or need not to do – to contribute towards unity?

I can’t speak for the whole of Jeremy’s supporters, who are numbered in their hundreds and thousands; I know that in my Labour group, we are always bending over backwards to be friendly and to try and be positive in all of our meetings. So I think we just have to keep on being that – continue trying to win people over by and through our responses.

I was knocking doors for Labour last week in support of a local campaign protesting the planned closure of several doctors’ surgeries – I spoke to a voter on a door who said that they love the Labour party but felt unable to vote for us as long as Corbyn is leader. What should we say to voters like that?

The first thing I do is to ask them why they feel that way; most of the time, what I find is that they’ve been reading the press, which has been rabid about Jeremy Corbyn. In all the research that we and others have done, the British public agree overwhelmingly with the policies espoused by Jeremy Corbyn, so we’ve got to get on the doorstep and start talking about policies. I think that sometimes what happens in constituency Labour party groups is that people are saying “go out there and canvass but don’t mention Jeremy”. I think that we need to do the opposite – we need to go out there and talk about Jeremy and his policies all the time.

Now that Corbyn has a stronger mandate and we’ve had these two programmes on Momentum: Channel 4’s Dispatches and BBC’s Panorama, which were explanations of the group, Momentum’s role will be pivotal. How can Momentum contribute towards party unity and get its membership out on the doorstep?

I think we have to turn our base into an activist base that goes out there and starts campaigning – and doesn’t just campaign during elections but campaigns all the time, outside election time. We have to do the long campaign.

The Corbyn campaign put out a video that was subsequently withdrawn – it had been condemned by the pressure group the Campaign Against Antisemitism, which has filed a disciplinary complaint against him. What are your thoughts on the video?

I find their use of accusations of antisemitism reprehensible – I am an anti-racist campaigner and I think they debase the whole debate around anti-racism and I think they should be ashamed of themselves. There is nothing wrong with that video that anyone could look at it and say this is antisemitic. I would suggest that if people have doubt, they should look at the video and judge for themselves whether it is antisemitic.

There’s been a compliance process over the last several months that’s excluded people from the party for comments on social media. Now that Corbyn is in again, how should compliance change?

One of the issues is that we have gotten Jeremy back in as leader, but control of the NEC is still under question. Until the NEC actually accepts the recommendations of Chakrabati in terms of the workings of disciplinary procedures, then I think we’re going to be forever embroiled in these kinds of convoluted and strange disciplinary processes that no other political party would either have or put up with.

There have been rumours that Corbyn’s opponents will split from the party, or mount another leadership challenge. What do you think they’ll do?

I have absolutely no idea – there are so many permutations about how this game could now be played – and I say game because I think that there are some who are Jeremy’s opponents who kind of see it as a power game. I read a tweet somewhere saying that the purpose of this leadership election – which has damaged Labour hugely – has nothing to do with the idea that actually Owen Smith, his challenger, could have won, but is part of the process to actually undermine Jeremy. I think people like that should really think again about why they’re in the Labour party and what it is they’re doing.

Margaret Corvid is a writer, activist and professional dominatrix living in the south west.