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to hundreds of centres closing), frozen child benefit for three years, scrapped the Health in Pregnancy Grant and withdrawn child tax credits from higher earners.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
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The big problem for the NHS? Local government cuts

Even a U-Turn on planned cuts to the service itself will still leave the NHS under heavy pressure. 

38Degrees has uncovered a series of grisly plans for the NHS over the coming years. Among the highlights: severe cuts to frontline services at the Midland Metropolitan Hospital, including but limited to the closure of its Accident and Emergency department. Elsewhere, one of three hospitals in Leicester, Leicestershire and Rutland are to be shuttered, while there will be cuts to acute services in Suffolk and North East Essex.

These cuts come despite an additional £8bn annual cash injection into the NHS, characterised as the bare minimum needed by Simon Stevens, the head of NHS England.

The cuts are outlined in draft sustainability and transformation plans (STP) that will be approved in October before kicking off a period of wider consultation.

The problem for the NHS is twofold: although its funding remains ringfenced, healthcare inflation means that in reality, the health service requires above-inflation increases to stand still. But the second, bigger problem aren’t cuts to the NHS but to the rest of government spending, particularly local government cuts.

That has seen more pressure on hospital beds as outpatients who require further non-emergency care have nowhere to go, increasing lifestyle problems as cash-strapped councils either close or increase prices at subsidised local authority gyms, build on green space to make the best out of Britain’s booming property market, and cut other corners to manage the growing backlog of devolved cuts.

All of which means even a bigger supply of cash for the NHS than the £8bn promised at the last election – even the bonanza pledged by Vote Leave in the referendum, in fact – will still find itself disappearing down the cracks left by cuts elsewhere. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.