Why Labour would not reverse the coalition's child benefit cuts

The party believes in shifting spending from universal benefits such as child benefit and the winter fuel allowance to services such as childcare and social care.

After Ed Balls announced earlier this week that Labour would remove the winter fuel allowance from the wealthiest 5 per cent of pensioners, I wrote that it was a sign that the party would not seek to reverse the coalition's cuts to child benefit. Having made the argument against universalism in the case of winter fuel payments, it becomes harder to make it in the case of child benefit. 

This morning, the BBC has confirmed my suspicions, reporting that "a future Labour government would not reverse cuts to child benefit made by the coalition". This is partly for the obvious reason that it would be very expensive to do so. Given that public spending, as Balls indicated in his speech, will continue to fall under a Labour government, it will be hard to justify spending £2.3bn on restoring the benefit to individuals earning over £50,000 a year, who rank among the top 8 per cent of earners in the country. 

But the decision also likely reflects a wider shift in Labour thinking. Influential figures such as IPPR director Nick Pearce and Gavin Kelly, the chief executive of the Resolution Foundation, have recently argued that the party should switch spending from universal benefits such as the winter fuel allowance and child benefit to services such as social care and childcare. This is not just because the funds for improved provision cannot be raised through taxation alone, but also because universal services (most obviously the NHS, but also comprehensive education and Sure Start) have generated more enduring public support than cash benefits. It is notable, for instance, that while the government was able to win majority support for the cuts to child benefit, it could never hope to do so in the case of the NHS.

But despite the economic and political logic of the move, it will prompt anger among those such as Peter Hain, who retain a traditional social democratic commitment to universal benefits. The case of child benefit is a good example of what Richard Titmuss had in mind when he warned that "services for the poor end up being poor services". While removing child benefit from higher-earners, the coalition has simultaneously frozen it in cash terms for three years, a real-terms reduction of £1,080 for a family with two children. But rather than seeking to restore child benefit to its previous value, Labour, for the reasons I've outlined, is likely to focus on investing resources in childcare. 

Ed Miliband speaks at the CBI's annual conference on November 19, 2012 in London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty Images
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Responding to George Osborne's tax credit U-turn should have been Labour's victory lap

He changed the forecast, we changed the weather. But still it rains.

The Labour Party should have rested on its laurels in the Autumn Statement. While Gideon name checked his Tory colleagues for their successful lobbying, he should have been reading out the names of Labour members who changed his position.  I'll let the Tories have the potholes, (even though it was in Labour manifesto) but everything else was us. 

He stopped his assault on tax credits. Not because he woke up in his mansion in a cold sweat, the ghost of Christmas Future at the foot of his bed, ringing out the names of the thousands and thousands of children he would plunge into poverty. Nah, it's not that. It's as my sons might say "no way George, you got told!" The constant pressure of the Labour Party and a variety of Lords in a range of shades, supported by that media we are all meant to hate, did for him. It's the thousands of brilliant people who kept the pressure up by emailing politicians constantly that did it. Bravo us, boo nasty George!

As Baron Osborne thanked the Tory male MP for his brilliant idea, to spend the Tampax tax on women's services, I wanted to launch a tampon at his head. Not a used one you understand, I have some boundaries. He should have credited Paula Sheriff, the Labour MP for making this change. He should have credited all the brilliant women's groups, Yvette Cooper, Stella Creasy, Caroline Lucas and even little old me, for our constant, regular and persistent pestering on the subject of funding for refuges and women's services. 

On police cuts, his side should not have cheered him at all. We are now in a position when loud cheers are heard when nothing changes. So happy was his side that he was not cutting it, one can only conclude they really hate all the cutting they do. He should not have taken a ridiculous side swipe at Andy Burnham, but instead he should have credited the years and years of constant campaigning by Jack Dromey. 

I tell you what Georgie boy can take credit for, the many tax increases he chalked up. Increases in council tax to pay for huge deficit in care costs left by his cuts. Increases in the bit of council tax that pays for Police. Even though nothing changed remember. When he says levy or precept it's like when people say I'm curvy when they mean fat. It's a tax. 

He can take credit for making student nurses pay to work for free in the NHS. That's got his little privileged fingers all over it. My babies were both delivered by student midwives. The first time my sons life was saved, and on the second occasion my life was saved. The women who saved us were on placement hours as part of their training, working towards their qualifications. Now those same women, will be paying for the pleasure of working for free and saving lives. Paying to work for free! On reflection throwing a tampon at him is too good, this change makes me want to lob my son's placenta in his face.

Elsewhere in Parliament on Autumn Statement day Jeremy Hunt, capitulated and agreed to negotiate with Student Doctors. Thanks to the brilliant pressure built by junior doctors and in no small part Heidi Alexander. Another disaster averted, thanks to Labour.

I could go on and on with thanks to charities, think tanks, individual constituents and other opposition MPs who should have got the autumn cheers. We did it, we were a great and powerful opposition, we balanced the pain with reality. We made Lord sorry the first Lord of the Treasury and his stormtroopers move from the dark side. We should have got the cheers, but all we got was a black eye, when a little red book smacked us right in the face.