Connect with us

Published

on

The Conservatives will promise a tax cut for parents on Friday by raising the threshold for when families have to pay a levy on their child benefit.

The current system means if either parents or a parent’s partner earns more than £60,000, they begin paying the high income child benefit tax charge, and lose the benefit altogether when a salary hits £80,000.

But if the Tories win the election on 4 July, they have promised to increase the threshold to £120,000 before any tax is paid, and to £160,000 before the benefit is withdrawn, as well as base it on a household income, rather than an individual.

Politics live: Tories fall to worst rating since Truss in new poll

Chancellor Jeremy Hunt claimed the policy would lead to an average tax cut of £1,500 for around 700,000 families, and in turn “boost families’ financial security and give them more money to spend on the things that matter most”.

But Labour called it “another chaotic scattergun announcement from Rishi Sunak, adding to his list of desperate and unfunded policies that he knows can’t be delivered”.

Follow Sky News on WhatsApp
Follow Sky News on WhatsApp

Keep up with all the latest news from the UK and around the world by following Sky News

Tap here

This latest move by the government follows its decision in April to raise the threshold for when the high income child benefit tax charge kicks in from £50,000 to £60,000.

More on Conservatives

The party said the new £120,000 policy would cost £1.3bn by 2029 and be paid for by “clamping down on tax avoidance” – a measure it has promised to use throughout the campaign that it estimates will raise £6bn.

The Tories said the change would “end the unfairness that means single-earner households can start paying the tax charge when a household with two working parents and a much higher total income can keep the child benefit in full”.

But it would not come into force until autumn 2025 due to the “significant reform” to HMRC procedures that would need to take place first.

Jeremy Hunt meets staff during a visit to a builders merchant in south east London
Image:
Chancellor Jeremy Hunt will unveil his new plan on Friday. Pic: PA

Mr Hunt said: “Raising the next generation is the most important job any of us can do so it’s right that, as part of our clear plan to bring taxes down, we are reducing the burden on working families.”

But a Labour spokesperson said: “Rishi Sunak clearly wants to pretend the last 14 years didn’t happen, because almost all his policies reverse decisions his own party has taken.

“The choice at this election is five more years of Conservative chaos or stability with a changed Labour Party.”

The SNP’s David Linden attacked the plan, saying: “The Tories’ time is up – and no amount of desperate, last-minute policy announcements will stop the democratic drubbing that is coming their way.

“The Scottish people can see right through the Tories’ empty election promises because they know the only thing that Westminster has delivered is austerity cuts, Brexit and a cost-of-living crisis.

And the Liberal Democrats’ Treasury spokesperson, Sarah Olney, also said her rivals’ policies weren’t “worth the paper they are written on, after years of hiking taxes on hardworking families”.

She added: “Conservative ministers have had years to help parents with the cost of living but have done absolutely nothing apart from hiking taxes. It begs the question, what have they been doing all this time?”

Read more:
Who are the Conservatives and what are their policies?
The £13,000 omission in Sunak’s tax warning
The ultimate guide to the general election

Her party will also be focusing on parents with their election announcement, promising to double statutory maternity pay to £350 a month, and introduce a “dad month” of paid leave for new dads.

They will also make paid parental rights available from day one of a job and extend them to self-employed parents.

Lib Dem leader Sir Ed Davey said the proposals would “give new parents the choice and flexibility they need, backed up by a package of proper support”.

Meanwhile, Labour will talk about their housing strategy – including making the mortgage guarantee scheme permanent and promising to build 1.5 million homes over the next parliament.

Continue Reading

Politics

Trump says Musk ‘off the rails’ for forming political party to rival GOP

Published

on

By

Trump says Musk ‘off the rails’ for forming political party to rival GOP

Trump says Musk ‘off the rails’ for forming political party to rival GOP

US President Donald Trump has blasted Elon Musk’s plan to start a new political party that could splinter the Republican vote in the 2026 midterm elections.

Continue Reading

Politics

MP recalls childhood abuse as he calls for law change to make domestic abuse a specific criminal offence

Published

on

By

MP recalls childhood abuse as he calls for law change to make domestic abuse a specific criminal offence

An MP who decided until recently to “never speak” about the abuse he suffered as a child has shared his harrowing story so that “no kid has to go through” what he did.

Josh Babarinde describes being physically abused by his mother’s former partner from the age of four, and remembers crying himself to sleep under the covers “hearing shouts, hearing screams and things smash”.

He says he became hypervigilant growing up and felt safe at school but “like he was treading on eggshells” in his own home.

The Eastbourne MP, who is also the Liberal Democrats’ justice spokesperson, says his experience has driven his politics. He is calling on the government to stop abusers “slipping through the net” and being released from prison early.

Opening up about his story in his twenties was “difficult” but looking back, Mr Babarinde says, he is “so proud of the resilience of that kid”.

The MP recently found his childhood diary containing Star Wars drawings alongside an entry he wrote from the bathroom. The diary, he recalls, wrote: “I’m really going to try to go (to the toilet) but I can’t. Oh my goodness, I’m gonna be in so much trouble, I’m going to get smacked so hard.”

Then an entry five minutes later: “I still haven’t done anything, I’m going to be in so much trouble.”

More from Politics

He says reading the entry reminded him of how “helpless” he felt.

“It was mortifying,” he says. “An abuser takes away your sense of self-worth.”

Josh Babarinde speaking to Sky's Ali Fortescue.
Image:
Mr Babarinde says he wants the government to ‘properly recognise domestic abuse crimes in the law’

The 32-year-old is calling on the government to change the law to make domestic abuse a specific criminal offence. The change would mean, he argues, abusers can no longer effectively disguise their history under other offences like assault.

He says the Ministry of Justice’s early release scheme, which has seen thousands of prisoners released early to ease overcrowding, has failed to exclude domestic abusers despite government promises because there is no formal categorisation for offenders.

It is impossible, he argues, to know exactly how many domestic abusers are in prison currently so perpetrators are “slipping through the net” on early release.

Read more from Sky News:
Remembering the bravery of 7/7 victims and responders 20 years on
Met Police chief calls for ‘mega’ forces in push for shake-up

Please use Chrome browser for a more accessible video player

January: Rising violence against women and girls

Mr Babarinde says the uncertainty means victims and survivors are not able to prepare for their abuser’s release.

He said: “They might need to move house or move their kids to a new school, shop in different places. All of these kind of things are so important, and so that’s why that commitment the government made was so important.”

A spokesperson for the Ministry of Justice said: “Our thoughts are with all victims of domestic abuse – it takes immense courage to speak out.

“We are building a justice system that puts victims first – strengthening support, increasing transparency, and giving people the confidence to come forward and be heard.”

Continue Reading

Politics

Another tantrum from the Labour backbenches is inevitable

Published

on

By

Rachel Reeves hints at tax rises in autumn budget after welfare bill U-turn

In common with many parents across the country, here’s a conversation that I have with my young daughter on a semi-regular basis (bear with me, this will take on some political relevance eventually).

Me: “So it’s 15 minutes until your bedtime, you can either have a little bit of TV or do a jigsaw, not both.”

Daughter: “Ummmm, I want to watch TV.”

Me: “That’s fine, but it’s bed after that, you can’t do a jigsaw as well.”

Fast-forward 15 minutes.

Me: “Right, TV off now please, bedtime.”

(Pause)

Daughter: “I want to do a jigsaw.”

Now replace me with the government, the TV and jigsaw options with axing welfare cuts and scrapping the two-child cap, and my daughter with rebellious backbenchers.

Politics latest: Former Labour leader calls for wealth tax on assets above £10m

Please use Chrome browser for a more accessible video player

Rachel Reeves’s fiscal dilemma

That is the tension currently present between Downing Street and Labour MPs. And my initial ultimatum is the messaging being pumped out from the government this weekend.

In essence: you’ve had your welfare U-turn, so there’s no money left for the two-child cap to go as well.

As an aside – and before my inbox fills with angry emails lambasting me for using such a crude metaphor for policies that fundamentally alter the lives of some of the most vulnerable in society – yes, I hear you, and that’s part of my point.

Please use Chrome browser for a more accessible video player

Welfare U-turn ‘has come at cost’

For many in Labour, this approach feels like the lives of their constituents are being used in a childish game of horse-trading.

So what can be done?

Well, the government could change the rules.

Altering the fiscal rules is – and will likely remain – an extremely unlikely solution. But as it happens, one of Labour’s proverbial grandparents has just popped round with a different suggestion.

Please use Chrome browser for a more accessible video player

Welfare: ‘Didn’t get process right’ – PM

A wealth tax, Lord Neil Kinnock says, is the necessary outcome of the economic restrictions the party has placed on itself.

Ever the Labour storyteller, Lord Kinnock believes this would allow the government to craft a more compelling narrative about whose side this administration is on.

That could be valuable, given one of the big gripes from many backbench critics is that they still don’t really understand what this prime minister stands for – and by extension, what all these “difficult decisions” are in aid of.

The downside is whether it will actually raise much money.

Please use Chrome browser for a more accessible video player

Is Corbyn an existential risk to Labour?

The super-rich may have lots of assets to take a slice from, but they also have expensive lawyers ready to find novel ways to keep their client’s cash away from the prying eyes of the state.

Or, of course, they could just leave – as many are doing already.

In the short term, the future is a bit easier to predict.

If Downing Street is indeed now saying there is no money to scrap the two-child cap (after heavy briefing in the opposite direction just weeks ago), an almighty tantrum from the backbenches is inevitable.

And as every parent knows, the more you give in, the harder it becomes to hold the line.

Continue Reading

Trending