| Child benefit reforms offer opposition an opportunity Labour says the government's measures are hitting families with children at all levels of income – and that could chime with disgruntled Liberal DemocratsGeorge Osborne's announcement that child benefit for high earners is to be withdrawn provides a challenge for the Labour party's new regime – and, at first glance, not a tricky one.To be a credible opposition, surely Labour has to support the end of a benefit to those earning double the average salary?The Tories are emphasising that the move is targeted at higher earners, with Osborne saying it was aimed at the top 15% of wealthiest households.So what, on the face of it, is there for Labour to oppose?Opposition politicians, however, don't think the issue is quite that straightforward.That's why the shadow work and pensions secretary, Yvette Cooper, reacted against the cut, saying the chancellor is launching a broader attack on families – a strange step for a government that has promised to be the "most family friendly ever"."This morning, you did not hear a measure announced that penalises every high earner," Cooper said, "but a measure that penalises high earners with families. This is not 'we're all in this together' stuff."Opposition politicians say that if all the economic measures since the June budget, which include changes to child tax credits, child benefit freezes and the housing benefit freeze, are looked at alongside today's announcement, they reveal that – at every level of income – families with children have been hit hardest by the government's measures.Research published by the Institute for Fiscal Studies during the summer shows that a total of £4.5bn has been cut from families and children since the budget, something that appears odd alongside the cuts to corporation tax the coalition has also announced.Yes, there have been increases in capital gains tax and the 50p rate is staying, but the overall picture, opposition politicians say, still shows more of the burden falling on families.They claim the measures will end up hitting those families who are not that flush – the "squeezed middle" Ed Miliband talked about during his first leader's speech in Manchester.Because Osborne was not keen to bring in an era of means-testing, a single father with four children who is earning just over £45,000 stands to lose the benefit for all four children.But a couple earning just under the £44,000 cutoff point – £43,500 and a joint income of £87,000 – will be fine.Labour will say they plan to ringfence universal benefits through a £5bn bank levy, a measure they hope to contrast favourably with the Tory cutting of corporation tax.But if they move to support the government in its introduction of Iain Duncan Smith's universal credit – something the coalition plans to pay with the £1bn raised by scrapping high earner child benefit – Labour will have questions to answer about how they would propose to fund it.Tim Horton, of the Fabian society, says: "The point about universal benefits is that they recruit the sharp-elbowed middle classes to the cause of the welfare state."When you have the Daily Mail on your side, as this announcement will achieve, then you're in a strong position".The issue also gives Labour a chance to woo the Liberal Democrat grassroots. At their conference two weeks ago, the Lib Dems passed an amendment pledging to safeguard the universal child benefit. The amendment ensured child benefit would not be means-tested or taxed.When Nick Clegg floated the idea in an interview with the Guardian a year ago, Steve Webb, now a work and pensions minister, said: "We've been able to conduct the review speedily over the last 24 hours – and I am pleased to say that the policy won't be changing [it]. I read ... we were going to look at 'middle class child benefit'. I have looked at it, and I have rejected it".Now, in the words of one Lib Dem MP watching this week's proceedings in Birmingham, Webb has lost that internal battle with Duncan Smith. Labour hopes to recruit Lib Dems over the next five years, and this could be a perfect prod.Conservative conferenceConservativesTax and spendingLabourLiberal DemocratsEconomic policyWelfareYvette CooperAllegra Strattonguardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds guardian.co.uk |
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