Is this the coalition's 10p tax moment?

Child benefit cuts come under attack from all sides.

It must count as some achievement to attract the simultaneous ire of the Daily Mail, the Daily Telegraph, the Institute for Fiscal Studies, the trade union movement and the Labour Party. That's the unusual position George Osborne finds himself in this morning as his raid on child benefit comes under attack.

It appears that the cabinet was given little, if any, advance warning of the move, with one minister describing it as "complete bombshell". The Mail and Telegraph both attack the measure as a blow against the family in their leaders this morning and the IFS warns of the perverse anti-work incentives that result from the move. The decision to abolish child benefit for all higher-rate taxpayers means that a one-earner couple with two children with a gross income of £43,876-£46,850 would be worse off than if their income were £43,875. A one-earner couple with an income of £43,875 would need a pay rise of at least £2,975 to ensure they were no worse off after paying tax and losing child benefit.

It's for reasons like this that, less than 24 hours after the measure was announced, the children's minister, Tim Loughton, has already floated the possibility of "compensating measures" for those who have lost out. Is this the coalition's 10p tax moment? It would be foolish to rule it out. The decision to simultaneously abolish tax credits for all those earning over £30,000 means that there will be howls of anguish from those set to lose thousands of pounds of benefits in a single stroke.

But far more significant is the fact that this marks the opening salvo in the coalition's war on the universal welfare state. The decision to make child benefit universal was never just about income, rather it was the means by which society collectively recognised and supported the decision of couples to start a family. Once the poison of means-testing is injected into the system, the principles on which the entire welfare state is built start to break down. And it is the poorest who will suffer the most from the abandonment of universality. As the great sociologist, Richard Titmuss phrased it: "services for the poor will always be poor services." Ed Miliband must live up to his campaign promises and resist the coalition all the way.

George Eaton is political editor of the New Statesman.

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In your 30s? You missed out on £26,000 and you're not even protesting

The 1980s kids seem resigned to their fate - for now. 

Imagine you’re in your thirties, and you’re renting in a shared house, on roughly the same pay you earned five years ago. Now imagine you have a friend, also in their thirties. This friend owns their own home, gets pay rises every year and has a more generous pension to beat. In fact, they are twice as rich as you. 

When you try to talk about how worried you are about your financial situation, the friend shrugs and says: “I was in that situation too.”

Un-friend, right? But this is, in fact, reality. A study from the Institute for Fiscal Studies found that Brits in their early thirties have a median wealth of £27,000. But ten years ago, a thirty something had £53,000. In other words, that unbearable friend is just someone exactly the same as you, who is now in their forties. 

Not only do Brits born in the early 1980s have half the wealth they would have had if they were born in the 1970s, but they are the first generation to be in this position since World War II.  According to the IFS study, each cohort has got progressively richer. But then, just as the 1980s kids were reaching adulthood, a couple of things happened at once.

House prices raced ahead of wages. Employers made pensions less generous. And, at the crucial point that the 1980s kids were finding their feet in the jobs market, the recession struck. The 1980s kids didn’t manage to buy homes in time to take advantage of low mortgage rates. Instead, they are stuck paying increasing amounts of rent. 

If the wealth distribution between someone in their 30s and someone in their 40s is stark, this is only the starting point in intergenerational inequality. The IFS expects pensioners’ incomes to race ahead of workers in the coming decade. 

So why, given this unprecedented reversal in fortunes, are Brits in their early thirties not marching in the streets? Why are they not burning tyres outside the Treasury while shouting: “Give us out £26k back?” 

The obvious fact that no one is going to be protesting their granny’s good fortune aside, it seems one reason for the 1980s kids’ resignation is they are still in denial. One thirty something wrote to The Staggers that the idea of being able to buy a house had become too abstract to worry about. Instead:

“You just try and get through this month and then worry about next month, which is probably self-defeating, but I think it's quite tough to get in the mindset that you're going to put something by so maybe in 10 years you can buy a shoebox a two-hour train ride from where you actually want to be.”

Another reflected that “people keep saying ‘something will turn up’”.

The Staggers turned to our resident thirty something, Yo Zushi, for his thoughts. He agreed with the IFS analysis that the recession mattered:

"We were spoiled by an artificially inflated balloon of cheap credit and growing up was something you did… later. Then the crash came in 2007-2008, and it became something we couldn’t afford to do. 

I would have got round to becoming comfortably off, I tell myself, had I been given another ten years of amoral capitalist boom to do so. Many of those who were born in the early 1970s drifted along, took a nap and woke up in possession of a house, all mod cons and a decent-paying job. But we slightly younger Gen X-ers followed in their slipstream and somehow fell off the edge. Oh well. "

Will the inertia of the1980s kids last? Perhaps – but Zushi sees in the support for Jeremy Corbyn, a swell of feeling at last. “Our lack of access to the life we were promised in our teens has woken many of us up to why things suck. That’s a good thing. 

“And now we have Corbyn to help sort it all out. That’s not meant sarcastically – I really think he’ll do it.”