From the TUC

Budget 2010: £1293 a year income cut for poorest families with babies

22 Jun 2010, by in Society & Welfare

Today’s Budget set out how the poorest pregnant women and families with very young children will see their incomes fall.

  • The Sure Start Maternity Grant will, from April 2011, only be available for the first child in a family. This is a cut of £500 for low income pregnant mothers.
  • The Health in Pregnancy Grant has been abolished – this was a universal grant of £190 available to all mothers to promote child and maternal health and engagement with health services.
  • The Baby Element to Tax Credits has been cut. This is an additional payment of up to £545 a year for families in receipt of Tax Credits with a child aged under one.

In addition, the previous Government’s introduction of a new Tax Credit for low income families will not go ahead. This Toddler Tax Credit would have provided an extra £4 a week for families with children aged one or two. This is essentially a further cut of £208 .

Child Benefit has also been frozen for three years – which will mean a significant reduction in its real terms value. And of course the Child Trust Fund has already been cut.

At the same time, Child Tax Credit is being increased by £150 above inflation. This will mean that for families on low incomes with older children will see a small increase in their incomes (although their costs will also rise as a result of the VAT hike).

Those who will be hardest hit by these policies are therefore the lowest income families with very young children, and middle income families with children who find their Tax Credit eligibilility has been reduced (as a result of the eligibility thresholds being lowered).

The lowest income families with new babies will now be £1293 a year worse off than they would have been had the grants and Baby Element remained in place, and a Todder Tax Credit been introduced.

22 Responses to Budget 2010: £1293 a year income cut for poorest families with babies

  1. This is no Robin Hood Tax | ToUChstone blog: A public policy blog from the TUC
    Jun 22nd 2010, 2:42 pm

    […] think we can translate this as the City has been let off today as poor mothers pay a heavy price. Related posts (automatically generated):Bank levy and/or Robin Hood Tax? FT supports one, ignores […]

  2. Tweets that mention Budget 2010: £1293 a year income cut for poorest families with babies | ToUChstone blog: A public policy blog from the TUC — Topsy.com
    Jun 22nd 2010, 2:43 pm

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  3. Tokyo Gaijin
    Jun 22nd 2010, 2:56 pm

    If people can’t afford to raise children without benefit support they shouldn’t have them.

  4. Karina
    Jun 22nd 2010, 3:27 pm

    Tokyo Gaijin said “If people can’t afford to raise children without benefit support they shouldn’t have them.”

    I didn’t realise we were living in a country where it is mandatory to apply for a licence to have children. What about women who get pregnant by accident and aren’t in an ideal financial situation? Are you suggesting that they are required to have an abortion?

  5. Tokyo Gaijin
    Jun 22nd 2010, 3:47 pm

    @Karina
    Who said anything about needing a licence to have children ?
    What I am saying is that all people who choose to have children – which includes the women you mention who get pregnant by accident – have the responsibility of providing for those children. Why should other peoples taxes pay for those decisions ?

  6. The Budget and Tax Credits | ToUChstone blog: A public policy blog from the TUC
    Jun 22nd 2010, 4:28 pm

    […] Credit and the toddler supplement promised by the last government will be withdrawn. As Nicola has pointed out, this is one of a series of tax credit and benefit changes that will cost families with babies […]

  7. David Telford
    Jun 22nd 2010, 9:07 pm

    @ Karina There is no reason for anyone to have children if they are not ready to have them, be that financially or emotionally. It’s a lifestyle choice

  8. David Telford
    Jun 22nd 2010, 9:14 pm

    Karina There is no reason for anyone to have children if they are not ready to have them, be that financially or emotionally. It’s a lifestyle choice

  9. Cuts in the value of benefits | ToUChstone blog: A public policy blog from the TUC
    Jun 25th 2010, 1:49 pm

    […] well as including a large number of cuts in benefit entitlements (for example for the poorest mothers and for disabled people) the Budget’s announced changes in the mechanism for benefit […]

  10. Budget claims on child poverty do not stack up | ToUChstone blog: A public policy blog from the TUC
    Jun 25th 2010, 4:13 pm

    […] Housing Benefit cuts, cuts in DLA (where around 12 per cent of claimants are children), cuts to grants for mothers (the Sure Start Maternity Grant and the Health in Pregnancy Grant) and increased conditionality for […]

  11. Georgina Jayne :@
    Jun 26th 2010, 12:11 am

    HOLD ON ONE MINUTE I am pregnant it wasn’t planned I was looking at a career in beauty therapy working on a cruise ship a well paid job until I fell pregnant and the college took me off my course I have a beauty therapy level 1 qualification but I wasn’t going to kill a human life growing inside me just because the college told me I couldn’t continue my level 2 qualification as I fell pregnant unexpectedly don’t give people grief when everyone different some people do scrounge off the benefits system but not all of us have a choice in what life’s throws at us and not everyone is that nasty to kill a human life inside them whether its a week old or whatever its still a life I was kicked out by my mum and forced to move to a different area with my dad now my dads moving in with his girlfriend I am homeless and 37 weeks pregnant I have a flat on the council as no one else will take me because I am only just turning 20 years old the council wont let my partner the father to my unborn child live with me when we are willing to be a family and he’s trying his hardest every second of the day to get a job how can people accuse everyone as being benefit scroungers when half of the time its not that simple to do it how they would like us to and to be quiet honest I may still be young but my nan taught me well and I am not a stupid young lady I would really like to work and want to do childcare at college so I can be there for my baby when he’s born but also to bring an income in to support him and give him the best of life and what he deserves but you need to take into consideration that every where I go to get into college wont take me because I am pregnant and it isn’t easy to be forced to be a single mum because the council say you cant have your partner live with you because the flat is only one bedroomed which makes me have to mention the fact that I will be on the streets within the next week as the flat ive been offered by the council isn’t going to be available to live in until beginning of august and my baby’s due 17Th of July life’s hard and not everything is perfect or goes to plan and you have to deal with what gets thrown at you so before you think you have a right to an opinion on our life’s TRY LIVING IN OUR SHOES WERE NOT ALL BAD PEOPLE SOME OF US HAVE JUST HAD A BAD START IN LIFE NOT OF OUR OWN CHOICE!!!

  12. Adam to Tokyo Gaijin
    Jun 30th 2010, 3:35 pm

    Maybe you should pay me back something as well. since I have never used NHS for the last 6 years but was contributing solidly? Or maybe your parents also should pay me something back becasue I keep contributing to their cozy retirement? What do you reckon?

  13. Faye Mcgann
    Jun 30th 2010, 10:50 pm

    i have a young baby 9 months old i am a single mum and i do the very best for my daughter i can not work as i have no surport from anyone i’m on benefits and yes i would love 2 go back to work but can’t. i didn’t plan to become a single mum but my boyfriend up and left when i was pregnant and i’m sorry if me being on benefits upsets anyone people on benefits have a streo type and i am not that at all. i am scared that with these cuts i won’t be able to afford my rent and the council have no housing at this time. so give us a brack i’m worried for me and my daughter

  14. Tokyo Gaijin
    Jul 1st 2010, 12:58 am

    @ Adam
    What point are you trying to make ?
    As you know nothing or me of my family situation I suggest you skip the comments about parents and pensions.

  15. Tokyo Gaijin
    Jul 1st 2010, 1:18 am

    @ Faye
    Your ex boyfriend is also responsible for the upkeep of your daughter what is he contributing ?

  16. The Independent View: Child poverty
    Jul 6th 2010, 6:21 pm

    […] the £208 a year toddler tax credit planned by the last government. They add up to cuts of up to £1,293 a year in the income of poor families with babies and […]

  17. Cuts Watch #165: Young Volunteers | ToUChstone blog: A public policy blog from the TUC
    Aug 3rd 2010, 10:13 am

    […] on cuts in local children’s and youth services and that the burden of benefit cuts is falling disproportionately on families with children and […]

  18. 100 days of Coalition and over 100 unfair cuts | ToUChstone blog: A public policy blog from the TUC
    Aug 18th 2010, 12:35 pm

    […] Sure Start Maternity Grant (which is only available to the poorest families) for all children after a family’s first […]

  19. Sam Emeto
    Aug 18th 2010, 2:44 pm

    @ Toky Gaijin
    I just pity f**ls like you, “if people can’t afford to have children they should not have them”.I did not vote for this “GOVERNMENT” NOW GIVE ME MY TAXES USED TO PAY MP’s, MINISTERs ETC BACK. And while you are at it bring the troops home ( major savings), the Euro MP’s and sell all the banks the tax payer paid for.

  20. What is going to happen to universal benefits? | ToUChstone blog: A public policy blog from the TUC
    Aug 19th 2010, 2:34 am

    […] restrictions on ‘universal’ benefits it won’t come as a bolt out of the blue. The Budget froze Child Benefit for three years and the re-testing of Disability Living Allowance claims is supposed […]

  21. Tokyo Gaijin
    Aug 19th 2010, 11:48 am

    @ Sam Emoto
    Why do you think people have a right to get welfare payments for having children ? Why should they not take responsibility for their own choices ?
    Your other comments are so stupid as to be unworthy of a response.

  22. Inequality and climate change | ToUChstone blog: A public policy blog from the TUC
    Aug 19th 2010, 4:52 pm

    […] of a policy trend towards widening inequality that is already established.  The Budget froze Child Benefit for three years and the re-testing of Disability Living Allowance claims is supposed […]