2010 Budget provokes differing responses from parents
23 June 2010
Following the recent budget announcements, which saw families facing cuts to their income, The Children's Society has spoken to three mothers all with very different household incomes and family circumstances. We asked them how these changes will impact on family life.
The key changes which impact on children and families include:
- Child benefit will be frozen for three years
- The one off health in pregnancy grant for mothers-to-be will be abolished
- An increase in VAT from 17.5% to 20%
- From 2012 those with a joint annual income above £40,000 will lose their child element of tax credit
- Sure Start grants will be capped to the first child only
Our three case studies live in different parts of England and all have very different opinions of how these changes to the public purse will impact on them. All have varying degrees of income. The one opinion that does remain is that ultimately their children will be the ones that lose out in the long run.
Samantha Smithson is a single mum with two children. Her youngest daughter has special needs and Samantha is currently awaiting a diagnosis for her daughter before she can receive any additional financial support. Her household annual income is around £11,000.
"As a single parent of two children, one who has special needs, any change or freeze in benefits will impact on me. Although child benefit only increases slightly each year, when the pennies are already being counted, every little increase helps, however small it may seem. That £4 extra a month I would usually get for both my children adds up to £72 a year. So, over a three year period I will be £216 worse off. I feel that the wealthiest people and small businesses have benefited the most from this emergency budget. For me I feel, once again that I still be struggling more than ever."
Kelly Hill has three children under 8. Her annual household income is around £41,000.
"I am outraged at this budget. My household income is just over £40,000 – I know that to some people that sounds a great deal – but the tax credits help. What with the mortgage, travel expenses and food, it all adds up. Losing our tax credits of around £545 is a real blow. I usually put the child benefit away for the children, so along with the freeze in child benefit, it’s my kids who will ultimately lose out."
Katie Harris, from Essex is a married mother of three children. Her annual household income in around £59,000.
"I consider myself and my family very lucky. My husband is a high ranking officer in the Armed Forces. I used to work as a PA and gave up working when I had our children. I have three children now, my youngest being four. I would like to return to work part time when he goes to school – so the increase in the tax threshold is an added bonus. It’s nice to know I will keep more of my hard earned cash. It’s great that there will be a freeze on council tax. I do feel however that if I was a single parent or a lower income family I wouldn't be benefiting quite so much from these decisions."
