The coalition looks to widen its attack on child benefit

The benefit could be limited to two children for all families.

Having accused those parents aggrieved at losing their child benefit of "fiscal nimbyism", the government looks set to go even further in its assault on welfare. Treasury minister David Gauke (the man responsible for that "nimbyism" jibe) yesterday revealed on Radio 4's Moneybox that the coalition was considering limiting child benefit to a maximum of two children for all families. Iain Duncan Smith has previously suggested that the government could restrict benefits for out-of-work families, but Gauke hinted that the measure could also apply to those in-work. He said: "We are looking at it in terms of the welfare bill across the board as to how that might work." A Treasury source went on to tell the Daily Mail:

All options are being looked at in this area. It’s not something we can do retrospectively. The main focus is on the incentives that apply to workless households as opposed to working households. You could just do that with child tax credits. But we are looking in detail at child benefit as well. We are looking at various options.

The government emphasised that no details had been settled and that the measure "would only apply to new children", but it would still be wise to tread carefully. Limiting child benefit to two children, regardless of parental employment status, would be seen as a betrayal of its promise to "make work pay". It would also be yet another example of the government penalising families. Since coming to power, the coalition has abolished baby bonds, removed the ring-fence on Sure Start (leading to hundreds of centres closing), frozen child benefit for three years, scrapped the Health in Pregnancy Grant and withdrawn child tax credits from higher earners. Pensioners, by contrast, have retained universal benefits, including free bus passes, free television licen­ces and the Winter Fuel Allowance. While cutting welfare for families isn't a good argument for cutting welfare for the elderly (we need not choose between competing sets of welfare cuts, in other words), it will be even harder for the government to maintain this double standard if it widens its assault on child benefit.

Work and Pensions Secretary Iain Duncan Smith speaks at last month's Conservative conference in Birmingham. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Theresa May knows she's talking nonsense - here's why she's doing it

The Prime Minister's argument increases the sense that this is a time to "lend" - in her words - the Tories your vote.

Good morning.  Angela Merkel and Theresa May are more similar politicians than people think, and that holds true for Brexit too. The German Chancellor gave a speech yesterday, and the message: Brexit means Brexit.

Of course, the emphasis is slightly different. When May says it, it's about reassuring the Brexit elite in SW1 that she isn't going to backslide, and anxious Remainers and soft Brexiteers in the country that it will work out okay in the end.

When Merkel says it, she's setting out what the EU wants and the reality of third country status outside the European Union.  She's also, as with May, tilting to her own party and public opinion in Germany, which thinks that the UK was an awkward partner in the EU and is being even more awkward in the manner of its leaving.

It's a measure of how poor the debate both during the referendum and its aftermath is that Merkel's bland statement of reality - "A third-party state - and that's what Britain will be - can't and won't be able to have the same rights, let alone a better position than a member of the European Union" - feels newsworthy.

In the short term, all this helps Theresa May. Her response - delivered to a carefully-selected audience of Leeds factory workers, the better to avoid awkward questions - that the EU is "ganging up" on Britain is ludicrous if you think about it. A bloc of nations acting in their own interest against their smaller partners - colour me surprised!

But in terms of what May wants out of this election - a massive majority that gives her carte blanche to implement her agenda and puts Labour out of contention for at least a decade - it's a great message. It increases the sense that this is a time to "lend" - in May's words - the Tories your vote. You may be unhappy about the referendum result, you may usually vote Labour - but on this occasion, what's needed is a one-off Tory vote to make Brexit a success.

May's message is silly if you pay any attention to how the EU works or indeed to the internal politics of the EU27. That doesn't mean it won't be effective.

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.

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