Labour criticises Osborne’s “Mummy Tax” small print as maternity pay is cut

December 5, 2012 9:55 pm

There’s always something hidden away in Osborne’s announcements. Today’s Autumn Statement seems to have had several already, but Labour has identified a cut to maternity pay – or “The Mummy Tax’ – as Osborne’s small print this time. Catherine McKinnell MP, Labour’s shadow Treasury minister, said this evening:

“In the Budget the small print was the granny tax and in the autumn statement the hidden detail was George Osborne’s mummy tax, as maternity pay is cut in real terms. The government claims they are targeting the work-shy and benefit scroungers, but it’s just not true. They are hitting millions of working families, and mums taking time out from work to look after their new born baby. And all this is happening on the same day that millionaires get an average tax cut of over £100,000. It’s completely unfair.”

Will #mummytax become the new #grannytax ?

  • http://www.biologymad.com/ HD2

    Will #mummytax become the new #grannytax ?
    No.

    He could, and should, have scrapped Child Benefit altogether for all not on Benefits. It was designed to produce the young men for WW3 to be fought in the early/mid 1960′s but that never happened (thank Goodness!) so the justification for it ended over 50 years ago.

    If you add up all the money squandered on this pointless bribe (of parents with their own children’s money) since 1946, it adds up to very close to the total National Debt – £1 trillion.

    Funny that!

  • http://twitter.com/KulganofCrydee Kulgan of Crydee

    So maternity pay is going up 1%. There you have it.

    • jaime taurosangastre candelas

      There is also the much-repeated, but wrong, assertion that millionaires are getting an average tax cut of £100,000. Do Shadow Treasury Ministers have to have even a Key Stage 2 Pass in basic arithmetic, or in the English language as to what “average” means? (And before anyone points to George Osborne, he probably does not have one either)

      Labour will find it a hard struggle to persuade the voters of the Party’s economic credibility with this level of nonsense.

      • John Ruddy

        Never heard it called an “average” tax cut. Its always been said that “millionaires are getting a tax cut of £100,000″… which is of course absolutely true.

        Please link to a statement calling it an average tax cut.

        • Hugh

          Absolutely true if “millionaire” means someone with an annual income of £1 million, which it is doesn’t. And if “tax cut” means millionaires being worse off overall as a result of all the tax changes – in which case, far from hitting lower earners yesterday, Osborne gave them a tax cut by raising the personal allowance.

          So, basically, no, not true.

        • Hugh

          If you had scrolled up the page it would have saved some googling: ‘McKinnell MP, Labour’s shadow Treasury minister, said this evening… all this is happening on the same day that millionaires get an average tax cut of over £100,000″

        • PeterBarnard

          John R (and others),
          The origin of this (average £107,000 income tax reduction) appears to be the data in Table 2.5 of HMRC document “Income Tax Liabilities Statistics, 2009-10 to 2012-13,” released on 27 April, 2012.
          This shows that for 2012-13, 6,000 people reported incomes between £1m and £2m (aggregate of £8,460 million), and 2,000 reported incomes greater than £2m (aggregate £9,940 million).
          Average per capita income for the first group = £1.41 million, with £1.26 million currently liable to the additional tax rate ; a 45% tax rate will reduce the average per capita tax paid by £63,000.
          Similarly, for the second group, a 45% tax rate will reduce the average per capita tax paid by £241,000.
          So : [(6,000 x £63,000) + (2,000 x £241,000)] divided by 8,000 = £107,500 tax reduction per capita.

        • PeterBarnard

          John R (and others),
          The origin of this (average £107,000 income tax reduction) appears to be the data in Table 2.5 of HMRC document “Income Tax Liabilities Statistics, 2009-10 to 2012-13,” released on 27 April, 2012.
          This shows that for 2012-13, 6,000 people reported incomes between £1m and £2m (aggregate of £8,460 million), and 2,000 reported incomes greater than £2m (aggregate £9,940 million).
          Average per capita income for the first group = £1.41 million, with £1.26 million currently liable to the additional tax rate ; a 45% tax rate will reduce the average per capita tax paid by £63,000.
          Similarly, for the second group, a 45% tax rate will reduce the average per capita tax paid by £241,000.
          So : [(6,000 x £63,000) + (2,000 x £241,000)] divided by 8,000 = £107,500 tax reduction per capita.

      • Hugh

        It’s the average income tax cut for those who earn £1 million income (£107,000), and they’ve – probably – got that right. Of course, that’s not what “millionaires” means, but that’s more of a literacy issue than one of arithmetic.

  • http://twitter.com/KulganofCrydee Kulgan of Crydee

    So maternity pay is going up 1%. There you have it.

  • http://twitter.com/KulganofCrydee Kulgan of Crydee

    So maternity pay is going up 1%. There you have it.

  • http://www.facebook.com/people/Daniel-Smith/516168738 Daniel Smith

    Work shy is a joke really – if I could get a job I would be well pleased but the only industry in Leicester is recruitment and not working per se – if we could get rid of the recruitment industry and all the associated middle men, unemployment would drop by about a third overnight.

Latest

  • News Polling Labour and Tories will win the same number of seats, says top pollster

    Labour and Tories will win the same number of seats, says top pollster

    Most political commentators seem to be hedging their bets a little with their predictions for next year’s election, but none have gone quite so far as respected pollster Peter Kellner (President of YouGov) who reckons that Labour and the Tories will win exactly the same number of seats. In the new copy of Prospect, Kellner raises no eyebrows when he says: “My own current guess is that both Labour and the Conservatives will fall short of outright victory.” Neither is it […]

    Read more →
  • Featured We need Graf and Grafters

    We need Graf and Grafters

    As my colleague Conor has pointed out, there is quite a lot of good news coming out of the latest Ashcroft polling for Labour. But there are some worrying messages too. The polling in Southampton Itchen is much too close for comfort as was the Thurrock polling in a previous round. Equally worry are the reports from voters of lack of activity they are seeing (or possibly noticing) from political parties. Only 16% are saying they have had any contact […]

    Read more →
  • News Labour will revoke energy companies’ licences if they breach agreed conditions, says Flint

    Labour will revoke energy companies’ licences if they breach agreed conditions, says Flint

    Today Caroline Flint MP, Shadow Energy and Climate Change Secretary, will lay out the difference between Labour’s and the Conservatives approach to energy. As part of Labour’s summer campaign, Flint is set to give a speech in which she will reveal new figures that show since 2010 household energy bills have risen four times as fast as wages and twice as fast as inflation. She will say that the Government has not been effective in ensuring that energy companies are held […]

    Read more →
  • Comment Will the Tory MP who wants to charge patients to use the NHS debate me?

    Will the Tory MP who wants to charge patients to use the NHS debate me?

    Earlier this week, Channel 4’s “Dispatches” asked if we are addicted to our doctors. It highlighted the increasing pressure the NHS is under and some of the costs associated with those pressures. My opponent in Bristol North West – Tory MP Charlotte Leslie – said that, in respect of A&E and GP surgery appointments that are deemed unnecessary, that “…we do need a charge I think to just enable people to think a little bit about what their use of […]

    Read more →
  • Comment Free information and free broadband – business policies of the future?

    Free information and free broadband – business policies of the future?

    Us folk in business are a straightforward lot. Yes, we like big picture ideas and visions of the future – but we also need real-life, practical policies and plans. And with nine months to go until the general election the business community is hungry for greater clarity on what Labour business policy will actually be. The latest offering from Policy Network, Owning The Future, edited by Chuka Umunna, is rich in big ideas about Britain’s role in the global economy. […]

    Read more →