Government on working class living standards — its shelving of the child benefit scheme - has been hidden behind the smokescreen of an outery against 'security leaks".
It is clear from the reports of the Cabinet meeting which discussed this decision that it was not taken in the interests of maintaining the pay packet of the "working man. un tue contary, it is a mcans of allowing the Labour Government to wriggle out of its commitment to help case the ravages of inflation through an extension of the present henelits offered. When this scheme was first introduced it was heralded as a kernel of Government strategy in the tight against poverty.
Labour took up this issue affer a wave of opposition had met moves by the Tories to cease paying tamily aowances to womea, and to saconp orate them instead into a tax-credit systein on the father's wages. Lahour was sarcou co promise maas BoE oBi would family allowances continue to be paid to mothers (many of whom see this as an essential purt of their woekly Income), but they would be increused, extended to include the first child, and made tax froo:
SHABBY This new proposal was dubbed the 'Child Benefit Scheme", and was But although a step forward, it was still hardly adequnle: the propusai called for the withdrowel of the child tax allowance (hence the cries: about reducing the father's pay packet), although the total lamin families) was to-be increased through higher payments to the mother At Led by women penerally prevents them from coping adequately with the etfects of inflation, this was an important poml.
But while claiming to uphold this promise, the Government has Instead come up (through blatant manpeuvring) with a shahby comprosise a new family allowance of Sl for the first child plus a 50p supplement for oneparent families. For tax-paying famdue to be implemented In April 1977, Bles, bowever, this £1 will anount to a mere 30p. A lar cry from the proposed tax free 12.64 child benefif scheme that was projected a tow months ago by the Labour Government!
Even more despicable than this Income (for both one and two parent clear attack on working class Living standarde are the revelations in New Society about how the decision was a time when the housekeeping receiv- reactied. The problem for the Government was straightforward -it realised that its commitment to the international bankers to cut puhlic exponditure incant that it simply sould not pay the promised for Social Services, bluntly pat it:
... the funds were not available DODIE WEPPLER real scandal isn't the revelation of Cabinof Parlament.
amount. As David Ennals, Secretary to pay an acceptable rate It was therefore decided to "postpone' the scheme and instead maintain with these policics the present rate, adding simply LI for the first child. This in itself posed potential problems for the Government - a bundred signatures were collected trom MPs calling for the reopening of the debate as opposition mounted amongst campalening groups ourside the habowed walls But thanks to back-room manocuvrine by Michael Cocks, Chiel Whip for the Government, the battleground bad heen propared in advance, The Governineat decided to hide behind the argument that the TUC would not stand for any reduction ib men's pay packets. Once again, the Intercats of women were pitted of the working class un a whole And while the Government desperately tries to divert attention to the supposed 'security risk" in volved in the leaking of its plans, it also covers up another fundamental atack on living standards. The child benetit scheme was initially planned to be such an advance that it would enable the Government to withdraw food subsidies Neediess to say, thir part of the scheme - worth about 71p a week to a family with two children - is stlu going ahead.
WOMEN What this attack amounts to is clear. Family allowances are now valued at a lower proportion of average earnings that at any time since Cheir introduction in 1945!
Cuts in social spending, living standards and jobs are the pillars of the Labour Governmene's policies, This shabhy comptomise of El for the first child mune any food subsidies goes hand in glove If the leaders of the workers movement are really interested in defending the living standards of the workine class, and in protecting the interests of women, they sust begin to campaign now for the retencion of the child tax allowance, Tor the full implementation of the child benefit scheme, ensoring that pay ments are automaticaly in creased to keep up with rises in the cust or living, and for the retention and an immediate inerease in food subsidies Only by giving a real Tead in meetine the Government's attacks ob such issues will the labour morement win women behind its banner.
O. What actions have been taken
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explains that the et 'secrets" but the Government's shel- ving of the Child Benefits Scheme.