Financial News
'Mummy Tax': Benefit Changes Criticised
The new Archbishop of Canterbury has chosen Mother's Day to fire a warning to the Government over planned cuts to welfare.
In his first significant intervention since being appointed, the Most Rev Justin Welby is among 43 bishops who have written an open letter condemning changes to the benefit system.
He warned that "children and families will pay the price" if the plans go ahead in their current form.
The Welfare Benefits Up-rating Bill will cap benefit rises at 1% a year until 2016.
Work and Pensions Secretary Iain Duncan Smith, who is attempting to steer the reforms through Parliament, has said they are needed to help get spending "back under control" and create a fairer deal for taxpayers.
But the archbishop, who will be formally enthroned at Canterbury Cathedral on March 21, said the legislation would remove the protection given to families against the rising cost of living and could push 200,000 children into poverty.
His predecessor, Dr Rowan Williams, was strongly criticised for expressing his views about Government policy.
Faith and communities minister Baroness Warsi told Sky's Dermot Murnaghan: "The Government takes seriously the concerns the church raises.
"But we are in very difficult circumstances and we have to make some tough decisions. And at a time when people's incomes are frozen and not going up in line with inflation, it is also right that we look at the possibility of freezing benefits."
Meanwhile, the Prime Minister had a Mother's Day card delivered to his door by campaigners for new mums whose benefits are about to be capped.
Labour has accused the Government of imposing a "mummy tax" and said the welfare reforms are part of a series of austerity measures which unfairly target mothers.
Shadow minister for women Yvette Cooper MP told Sky News: "It's like David Cameron and George Osborne have a blindspot about women because they're paying three times more than men in tax and benefit and pay and pension changes.
"That is so unfair when women earn less and own less than men.
"It shows that the Prime Minister and the Chancellor just don't get it and it's outrageous that new mums are hurt hardest."
Around 340,000 women claim either statutory maternity pay or maternity allowance every year.
Until now their benefits have gone up in line with inflation, which currently stands at 2.7%, according to the Consumer Price Index.
But from next month new mothers' benefits will go up by just 1% every year as part of a three-year cap on welfare increases.
So by 2015 critics have calculated the benefits will be effectively cut by £180 because they will not increase by as much as the cost of living will.
Schools minister, Liberal Democrat David Laws MP, defended the planned welfare reforms and said the Coalition had tried to help those on lower incomes.
He told Murnaghan: "We've had a public sector pay freeze. We've also had a 1% cap in the future on public sector pay. So we've have had to take difficult decisions not just for some of those on lower incomes but for everybody in society.
"And actually we've tried to help some of those on lower incomes by raising the tax free personal allowance and also exempting some of the lowest paid public sector workers from the effects of the pay freeze."
A spokeswoman for the Department for Work and Pensions said: "In difficult economic times we've protected the incomes of pensioners and disabled people, and most working age benefits will continue to increase 1%.
"This was a tough decision but it's one that will help keep the welfare bill sustainable in the longer term. By raising the personal allowance threshold, we've lifted two million people out of tax altogether, clearly benefiting people on a low income."
Single mum-to-be Helen Mockridge has one clear suggestion for a better way to reduce the deficit.
"Taxing really rich people, obviously, that's where the money should come from," she said.
"For me it's a real no-brainer and it makes me really angry that certain parts of society are very, very wealthy and the gap between rich and poor is getting bigger.
"That's where the money should be coming from, not from single mothers or the disabled or any other vulnerable group."
what do you think?

Grant Baines
There's a new Cameron and Osbourne story nearly every day lately about how much they're taking off nearly every group except the super rich. The thing is, they said they were going to do this during those debates in the run up to the last election and millions of stupid britons

shaun spencer
What particuarly makes me sick is you read these reports about cuts to benefits and the working classes and then you read about how 400 millionaires have been created at barkleys bank this year.

IRONSTINE
we can only wait for the next elections to rid ourselves of these scaremongering bullies

Anthony Smith
Single mum to be' where's the dad?

Diane Rogers
Good point

shaun spencer
This isnt about single mums to be. Its about maternity pay whether dads there or not.though quotes a single mum to be.

Diane Rogers
Shaun, if that is what is quoted that is what folks are going to comment on

Richard Gould
Dad or no dad there shouldn't be maternity pay. If I wanted to take time away from work for medical reasons for six months or a year, for an operation etc, I don't get a handout from the government and small companies cannot afford to pay for someone no to be there. I have a colleague who has cancer and his 28 week's SSP has just finished. He has got nothing from the state to support him.

lol mcr
Might as well scrap pensions, the NHS, free education etc, etc as well then Richard.

Michael Hawkins
Anthony From the 2 single mums I know the dad or one of them is living with the mother but claiming to be living else where Introduce a DNA data base for all, them match fathers with children

lol mcr
Michael, that is benefit fraud, nothing whatsoever to do with this story

jollyhollys
Perhaps he was killed in a tragic accident? Would she still be classed as a scrounger?

andy hanson
It's not the working mums he should be targeting as it's not there fault that there companies don't pay Maternity pay. My wife works pay time and she goes back to work next week if it wasn't for the job centres Maternity pay for the past 9 months we would have lost everything as I only been working a basic 39 wk for the past 3 months as work slowed down but her pay ends Wednesday and she back earning from a week on Monday.

Michael Hawkins
Did the firm get you wife pregnant ? Why then should they pay her not to work and pay someone else to do her job whilst she is off A woman where my wife works has had 4 children in 5 years She has yet to do a days work in that time, on her return she books the holiday she has missed In the same time the company has paid for a replacement staff to cover her in her absence No wonder companies are moving abroad

Richard Gould
Well said Michael! If people want children then they should pay for them. This country is encouraging single parent households by expecting the taxpayer to fund them. It is about time this stopped.

lol mcr
This has nothing to do with single parents, it's about all WORKING women.

Michael Hawkins
"This has nothing to do with single parents, it's about all WORKING women." So you do not believe in sexual equality then

lol mcr
Read the story again Michael and grow up

Leicester4life
My wages don't go up by the same rate as inflation so was should someones benefits.

Diane Rogers
Nor does mine

Graham Dunn
I havent had a pay rise for 3 years!! My pension contributions are up and my retirement age is now 68 instead of 60. Im being bent over without being kissed. But im thankful im in a job. Mothers to be will need to get by just as me n my kids do. We are as jimmyjeddi says weak sheep just following on because we wont do anything.

Andrea Hill
my pension.contributions have gone up, no pay rise in 3 years. bring this on i say,saying that i agree with maternity pay if they have worked and paid contrubutions and intend on going back to work.

lol mcr
What's your point then Andrea? Are you for or against maternity pay for working mothers being reduced?

Diane Rogers
If I have understood the news item it is not going down just not going up so much. I agree with maternity pay if money has been paid in.

Richard Gould
If you can't afford to have children then don't have them. It is not my responsibility as a taxpayer to pay for other people to have children. Expectant mothers should be means tested and if they can't afford the child then they should be forced into adoption. Money does not grow on trees and I am sick and tired of selfish and greedy people expecting to get hand outs from other people.

Roy Howard
I'll put your name to run the gas chambers then or forced abortions. Or is running the misinformation process more your style not getting your hands dirty. Most have moved on from this stone age attitude. Selfish

Richard Gould
I'll put your name down to donate all of your income to other people's children then Roy. There is no misinformation about people expecting money from the state to pay for children. If you can't afford them then don't have them.

Steven Tracey
Are you for real or just on the inexperienced side of 25? There's plenty of people who do pay for their own children but then loose their jobs - what then? Only the rich should breed- Tory style.

Richard Gould
5 children and I funded them all without additional hand-outs (Child benefit apart) and I am not a high earner, nor a staunch Tory. Just a hard worker who takes responsibility for his own and doesn't scrounge.

Bazil Brush
you are so right and who in their right mind wants to have kids in a country thats been changed for the worse by labour

Andrea Hill
agree totally with you richard gould, sick of paying out for these single mums with loads of kids. my son and his wife work, cant afford them yet. if you cant afford to have children, dont expect others to foot the bill.

Richard Gould
I would also like to point out Steven Tracey that I also served my country for thirteen years on a wage that a lot of people wouldn't get out of bed for. I received no special treatment and I didn't moan or demand more from the taxpayer. 13 years serving a country which only supports scroungers and the greedy.

lol mcr
Did your wife work at all whilst pregnant Richard?

Steven Tracey
5 nhs births, 5 lots of state education, 5 lots of nhs treatment, 5 lots of grandchildren = you haven't paid for them or you are a high earner. The math doesn't add up mate. And by your account - how did you know your job was guaranteed all the way through (accident, sickness, death?). I'm assuming your have some euthanasia style trick up your sleeve just in case? Just don't tell the kids eh? Time society had a better gauge to measurehuman value by rather than money - or are the bankers the pinnacle of human endeavour?

Andrea Hill
i also know someone who has worked really hard for years to set up a business, he is quite well off now, why should he pay more in taxes.he worked every day of the week, hardly took a holiday.

lol mcr
Andrea, do you agree that working women who pay their tax and NI should have their maternity benefit reduced?

Steven Tracey
Sorry Richard - I missed the detail in what you said "Expectant mothers should be means tested and if they can't afford the child then they should be forced into adoption." No mention of the father's income. So its safe to assume your wife met this criteria (please don't mention your income as this wasn't your point, plus who knows if a bloke is going to hang around anyways) Thank God someone had the state around or you may have marched her down to the clinic.

Arron Parr
Richard you area total idiot. me and my wife 3.kids both worked all our lifes and both have really good and well paid jobs. but you saying mothers should give up children. i dont think anyone cab force anyone to do that. you would of fitted in well when hitler was tryin to take over

Richard Gould
lol mcr no she was not employed whilst pregnant. Steven you are an idiot. You try to cause confusion in your attempt to justify your point in this debate by bringing in education, NHS etc. The debate is whether the taxpayer should pay for a woman to take time off work and be paid and to receive additional monies thereafter to finance their upbringing. Furthermore, "Time society had a better gauge to measure human value by rather than money" ??? Is it charity that you want?? Do you expect all who ask to get???? Everybody wants but there is little to give.

Richard Gould
Aaron, You lack even the basic intelligence to grasp my point. You can have as many children as you want. Just don't expect the taxpayer to finance you. It is pretty damned obvious that my argument also includes the father's income else how could I have afforded to have children.

Tricky One
Wow my eye's are playing tricks on me today. I keep reading 'they should be forced into adoption'. Must be my eye's. Or have i woken up 400 years ago?

Steven Tracey
Richard - I'm sorry my point was too complicated for you. You said "Expectant mothers should be means tested and if they can't afford the child then they should be forced into adoption". You wife has no guarantee that your going to stick around and wasn't even employed herself. She was a prime candidate for potentially having her children adopted - all that had to happen was for you to leave. It doesn't take an idiot to see that.

lol mcr
Then you are a liar Richard, you claim to be in a low paid job but managed to bring 5 kids up without any entitlement to family credit etc while your wife stayed at home. What a load of rubbish.

Richard Gould
Steven, why would you expect that I wouldn't stick around??? I have a strong belief in responsibility and not the mentality of today where people feel that they should be able to just up and go at the drop of a hat. Don't tar others with your low standards.

Steven Tracey
Richard's World - any bloke who's wife/gf falls pregnant (and he doesn't want a baby) can just walk away - baby adopted out at massive expense to the tax payer - bloke walks back in once baby has gone. Sounds like a control mechanism to me.

Steven Tracey
Richard - please see the difference between your personal situation and the point you are making regarding government policy. As for me - full time father of 2 for the last 17 yrs, I work (low paid and for my country also) full time, never received a penny from the CSA, and its the best thing I ever did and no man (yes I gæy too) would ever tell me to give up my children in a million years - I'd rather walk the streets. But maybe I'm the idiot?

Richard Gould
Steven Tracey's world - man is expected to not have responsibilities and is expected to just walk away at the drop of a hat. Steven Tracey's world - the taxpayer is there to pay for everybody else's children. Solution - Steven Tracey gives all of his money to the state to finance everybody else.

Steven Tracey
Ever thought about reading first, typing later?

Michael Hawkins
This comment has been removed for violations of our Terms and Conditions.

Bazil Brush
if labour were in power it would be worse as you will all be thinking that they are on the side of the working class. but your all being fooled by the system of politics

Steven Tracey
In my home there's 2 adults who pay for our 2 children - me and my partner. Not a woman in site - not a penny in CSA paid. I wish the media and the politicians would focus on all of us. Mammy tax? I must be fine then as there's just us daddies here

nigel molesworth
"Taxing really rich people" - ah yes, the panacea to cure all problems e.g., as Gillian Duffy, the good labour stalwart said to Gordon 'Borrow-and-Spend' Brown : "And what about the deficit Mr Brown?". What indeed? The deficit has been rising for over a century, thanks to an ever over-burdgeoning welfare state, and peoples' expectancy to partake of it as if it is some human right that grows on trees. I would like to remind those mothers it was THEIR choice to have kids, and it's MY money, what tiny little there is of it, that they want as a basic right, for doing nothing in return. They should remember that the country's annual increase in deficit was at it's greatest over the 13 years labour were in power. Of course labour will win the next election - they promise to fill these peoples' pockets so they will vote for them. Blow the country, it's all about my pocket - that's their profound philosophy!

Peter Edwardson
Ro623. That would definitly work, brilliant idea.

lol mcr
No Nigel, these are working women who are paying their contributions, it is their money too.

John Mechelen
Well said, Nigel.I see a lot of women crying wolf on a friday sat night in the pub.

lol mcr
I'm puzzled by your comment John, what do you mean?

Peter Edwardson
Move in right direction but not nearly enough. Overpopulation and services we can't afford.

john
Do the world a favour then, lead by example, I believe Beachy Head is quite popular.

Chris King
This is just deflecting from other benefit cuts like from the disabled and room tax which will come in next month. They don't want to tax the well off or rich more due to them being able to just walk away from this country, so they will take money from the people who don't have a choice. I have heard how people who have served their country in afghan and come back with trauma or missing arms and legs and the government don't even acknowledge it.

lol mcr
There seems to be a lot of confusion on this board. As soon as the word benefit appears talk turns to scroungers, single parents, wanting something for nothing, lack of responsibility etc, etc. Why is that? Why are people so quick to judge when they hear the word benefit? I can't believe pregnant/new mums who go out to work and have paid into the system are attracting so much negativity. If we are going to go down that road, we should start demonstrating outside hospitals, why are we giving sick pay to the ill and injured, I haven't made them sick, so why should I pay?

Michael Hawkins
"Shadow minister for women Yvette Cooper MP told Sky News: "It's like David Cameron and George Osborne have a blindspot about women because they're paying three times more than men in tax and benefit and pay and pension changes." Yvette you wanted equality with men So why are you complaining when you are given equality or did you only want the good bits

Val Bonney
"paying three times more" ... how is that equality?

Richard Gould
If you can't afford to pay for a mortgage do you expect the taxpayer to finance you? If you can't expect to pay for car finance do you expect the taxpayer to finance you? If you can't afford to pay for the upkeep of raising a child you expect the taxpayer to finance you! There is only so much money available from the taxpayer and people should stop expecting to be financed at every turn.

Steven Tracey
But its ok to bail out the banks? Not surprising coming Tom the guy who said "Expectant mothers should be means tested and if they can't afford the child then they should be forced into adoption". And then ran off.

Richard Gould
lol mcr, you obviously have difficulty in reading. I stated that I was not a high earner NOT I was on a low income. There is a middle ground. I also stated that I worked hard. That indicated that I was prepared to work a lot irrespective of the basic rate of pay which I was on. Furthermore, just for your information, family credit was not around when I started my family.

Steven Tracey
5 kids, no job and I guy who says. "Expectant mothers should be means tested and if they can't afford the child then they should be forced into adoption." I think she deserves a medal.









shaun spencer
5:24am on 10/3/2013
The gap between rich and poor is getting bigger, what an understatment.the rich dont even realise there is a reccession. In fact theyve been gaining from it so far.time for the mansion and second home tax.
Richard Gould
9:51am on 10/3/2013
Whilst I agree with you on this point Shaun it doesn't change the fact that the taxpayer is being forced to fund benefit scroungers and people who want to have children but can't afford to raise them without additional financial support. I can't afford to buy a house so how about giving me money???
lol mcr
10:09am on 10/3/2013
Are you saying new mothers are benefit scroungers?
Richard Gould
10:18am on 10/3/2013
I am saying that if you can't afford children then don't have them else yes, they are scroungers!
lol mcr
10:25am on 10/3/2013
So, these women who go out to work and pay their NI and taxes are scroungers?