AS an MP I receive a wide range of correspondence about any number of issues. It will come as no surprise to learn that there has been a lot of correspondence recently on the issue of Government cuts, particularly the proposals to reduce various benefits.
I can entirely understand why these issues are of concern to people, not just in Brecon and Radnorshire but across Wales and the rest of the UK, especially when it comes to welfare.
However, I think it is important that people are aware of exactly what the improved proposals on Child Tax Credits involve.
In the June Budget the Chancellor announced a significant increase in the Child Tax Credit that will have a substantial benefit for low income families across Wales. At that time it was proposed that the child element of the Child Tax Credit will increase by £150 per child in the next tax year (2011-12) and again by £60 in the following year (2012-13).
A later announcement by the Chancellor confirmed that there would be a further, above indexation, increase of £30 this year and £50 in April 2012. This means that the actual increase will be £180 and £110 in each of those years.
Admittedly, recent announcements, at the Autumn Conservative Party Conference, do mean that families on the highest incomes will lose their child benefit and this money will be redistributed towards families on the lowest incomes. But it is estimated that this will save around £2.5 billion a year by 2014-15.
The Comprehensive Spending Review identified a total of £7.2 billion that will be used to support the poorest families in the form of a ‘fairness premium’ to help to tackle child poverty and improve schools and access to high quality education.
This will include, from 2012-2013, an extension of free early education and care for all disadvantaged two year old school children. Early years intervention is vital to ensure that all children receive equal educational opportunities at a young age to give them the best possible start in life.
Additionally, a pupil premium worth £2.5 billion has been identified and will be targeted on the educational development of disadvantaged children.
Although these proposals are for England, funding will be transferred to the Welsh Assembly through the Barnet formula and it will be up to the Welsh Assembly Government to decide how to use these resources.
I appreciate why those families that will lose out are upset about this but I believe that this move is fair and I see it as right that the money saved will be redirected to those families at the lower end of the income scale who have a genuine need for the additional money.
Child poverty is something that has no place in the 21st Century. The Government in Westminster and the Welsh Assembly Government in Cardiff have admirable targets to reduce the levels of child poverty with the end goal being total eradication.
The current economic climate makes this objective difficult and I can’t pretend that we aren’t all going to feel the pinch in one way or another but to me it does seem that reducing the benefits to those receiving the top level of income is the fairest way to do it.
These are tough times for all of us but strong and bold measures are needed in order to reduce the deficit.
The Liberal Democrats have exerted their influence within the coalition to ensure that fairness is at the heart of any cuts in spending and welfare.
I was particularly pleased to hear of The Government’s decision to protect health and education spending which will mean that the Welsh Assembly Government will do proportionately better than the rest of the UK and this will ensure that we can still take action on tackling big issues such as child poverty and social care.
There will be difficulties, and there will doubtless be arguments about where the axe has fallen but this year we will spend £43bn on interest payments on the deficit – that is an outrageous figure, and we must cut the deficit immediately so that we can get back to a position where we can properly invest in public services.