Finance (No. 4) Bill

Steve McCabe Excerpts

Thursday 19th April 2012 Commons Chamber

[Mr Chope]

I hope that, unlike in previous debates—yesterday in the context of an amendment I tabled to clause 1, and on Second Reading—the Minister will have time to respond to the powerful point that my hon. Friend makes.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

If the hon. Gentleman is not successful with his amendment, will he take his constituent’s advice and ask his colleagues to vote against the proposal in its entirety?

--- Later in debate ---

[Cathy Jamieson]

I will be as brief as possible, as I am aware that there is not much time left.

There are two key issues: the principle of what child benefit is supposed to be for, and the practical implications of the Government’s proposals. I want to emphasise the word “child” because we have lost sight of the fact that we are talking about children. The Child Benefit Bill introduced in May 1975 by the then Labour Government, with all-party support, was intended to offer a universal, non-means-tested, cash-free tax benefit for the good of all children. At its simplest, it was designed to ensure that mothers had money paid regularly into their purses, giving them at least some form of stable income, and that the money would be used for their families.

[Steve McCabe]

Like the hon. Member for Christchurch (Mr Chope), a constituent of mine, Mrs Morris, contacted me. Her family’s income falls just above the threshold. They have four children to feed and clothe, and a mortgage, bills and fuel costs to pay, and they are going to lose £3,000 as a result of this measure. How can any reasonable person say that is fair?

[Cathy Jamieson]

My hon. Friend makes a very interesting point, and I shall come on to address the effect of this measure on many families on that borderline.

Many Members will have come from, or know, families for whom child benefit—or the family allowance, as it was called in days gone by—was a lifeline. No doubt some on the Government Benches will characterise our position as Labour trying to give more cash to high earners.