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 Miliband to outline Labour’s home-building plan tomorrow

    Miliband to outline Labour’s home-building plan tomorrow

    Tomorrow, Ed Miliband will outline Labour’s plan for house building and creating a fairer renting market. At a People’s Question Time in Hove, the Labour leader will explain how the current government has failed the millions of people who want to own a home but are unable to because of the ongoing housing crisis. Labour’s plan for housing includes ensuring that 200,000 more homes are built every year by 2020, giving local communities more robust powers to build the homes and […]

    Read more →
  • News Labour MP says party shouldn’t rule out a ‘grand coalition’ with the Tories

    Labour MP says party shouldn’t rule out a ‘grand coalition’ with the Tories

    Gisela Stuart, MP for Birmingham Edgbaston, has said that Labour shouldn’t rule out forming a ‘grand coalition’ with the Tories after the next election if neither party win a majority. Stuart told the Financial Times (£): “If on May 8 you had a position where Labour had more seats than the Tories but not enough to form a government — but the Tories had more votes than Labour — I think you should not dismiss the possibility of a grand coalition […]

    Read more →
  • Comment Zero Discrimination Day: why LBGT rights matter worldwide

    Zero Discrimination Day: why LBGT rights matter worldwide

    When Ed Miliband appointed me his LGBTI global envoy he displayed once again his grasp of the wrongs that exist in the world and our need to be part of the resolution of these defining issue. His lead was followed this month when President Obama appointed Randy Berry as State Department LGBT envoy. And this is extremely important because when oppression and discrimination are on the increase that is precisely when we need to give our voice to the voiceless. […]

    Read more →
  • News One million more families will have to pay the Bedroom Tax if the Tories win in May, figures show

    One million more families will have to pay the Bedroom Tax if the Tories win in May, figures show

    One million more families will have to pay the Bedroom Tax if the Tories win the election in May, according to figures examined by the Labour party. These figures show that 220,000 more families would have to pay the tax each year of the five yearlong Tory government. As it stands, of those paying the tax – which on average amounts to £14 more a week in rent for an extra bedroom and £25 for two or more – one […]

    Read more →
  • News Polling Two-thirds are in favour of Labour’s tuition fee pledge, poll finds

    Two-thirds are in favour of Labour’s tuition fee pledge, poll finds

    YouGov polling on behalf of The Times Red Box, has found that two-thirds of people are in favour of Labour’s plan to cut tuition fees from £9,000 to £6,000 a year. As we reported on Friday, Labour announced they would cut tuition fees and increase the maintenance grant by £400. They would fund this by reducing tax reliefs given to the country’s wealthiest pensioners. This policy would come in to force for those entering universities in September 2016. YouGov have […]

    Read more →
lablist-logo mark-ferguson maya conor coffee-cup
Everything Labour. Every Weekday Morning
×