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to hundreds of centres closing), frozen child benefit for three years, scrapped the Health in Pregnancy Grant and withdrawn child tax credits from higher earners.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.

Photo: Getty Images
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The Fire Brigades Union reaffiliates to Labour - what does it mean?

Any union rejoining Labour will be welcomed by most in the party - but the impact on the party's internal politics will be smaller than you think.

The Fire Brigades Union (FBU) has voted to reaffiliate to the Labour party, in what is seen as a boost to Jeremy Corbyn. What does it mean for Labour’s internal politics?

Firstly, technically, the FBU has never affliated before as they are notionally part of the civil service - however, following the firefighters' strike in 2004, they decisively broke with Labour.

The main impact will be felt on the floor of Labour party conference. Although the FBU’s membership – at around 38,000 – is too small to have a material effect on the outcome of votes themselves, it will change the tenor of the motions put before party conference.

The FBU’s leadership is not only to the left of most unions in the Trades Union Congress (TUC), it is more inclined to bring motions relating to foreign affairs than other unions with similar politics (it is more internationalist in focus than, say, the PCS, another union that may affiliate due to Corbyn’s leadership). Motions on Israel/Palestine, the nuclear deterrent, and other issues, will find more support from FBU delegates than it has from other affiliated trade unions.

In terms of the balance of power between the affiliated unions themselves, the FBU’s re-entry into Labour politics is unlikely to be much of a gamechanger. Trade union positions, elected by trade union delegates at conference, are unlikely to be moved leftwards by the reaffiliation of the FBU. Unite, the GMB, Unison and Usdaw are all large enough to all-but-guarantee themselves a seat around the NEC. Community, a small centrist union, has already lost its place on the NEC in favour of the bakers’ union, which is more aligned to Tom Watson than Jeremy Corbyn.

Matt Wrack, the FBU’s General Secretary, will be a genuine ally to Corbyn and John McDonnell. Len McCluskey and Dave Prentis were both bounced into endorsing Corbyn by their executives and did so less than wholeheartedly. Tim Roache, the newly-elected General Secretary of the GMB, has publicly supported Corbyn but is seen as a more moderate voice at the TUC. Only Dave Ward of the Communication Workers’ Union, who lent staff and resources to both Corbyn’s campaign team and to the parliamentary staff of Corbyn and McDonnell, is truly on side.

The impact of reaffiliation may be felt more keenly in local parties. The FBU’s membership looks small in real terms compared Unite and Unison have memberships of over a million, while the GMB and Usdaw are around the half-a-million mark, but is much more impressive when you consider that there are just 48,000 firefighters in Britain. This may make them more likely to participate in internal elections than other affiliated trade unionists, just 60,000 of whom voted in the Labour leadership election in 2015. However, it is worth noting that it is statistically unlikely most firefighters are Corbynites - those that are will mostly have already joined themselves. The affiliation, while a morale boost for many in the Labour party, is unlikely to prove as significant to the direction of the party as the outcome of Unison’s general secretary election or the struggle for power at the top of Unite in 2018. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.