1. ITV Report

PM asking the 'wrong question' on how to solve cost of living crisis

Rachel Reeves: If David Cameron’s so-called marriage tax break is his answer, then the Prime Minister has the wrong question. Photo: Labour Party

In an article for ITV News, Labour's chief secretary to the Treasury gives her views on the Prime Minister's marriage tax break plans.

The Tory Party conference offers the chance for the Prime Minister to tell the country how he plans to solve the cost of living crisis. Yet, on the first day, we find out that his flagship policy doesn’t support the vast majority of families in this country struggling to pay the bills. If David Cameron’s so-called marriage tax break is his answer, then the Prime Minister has the wrong question.

For millions of people across the country this announcement will seem perverse during a period of rising prices and falling wages. Two thirds of married couples won’t benefit at all. If both work on more than £10,000 a year, then they will not be able to transfer their tax allowance and they won’t get any extra money. David Cameron's flagship policy is not for anyone who is separated, widowed or divorced.

A single mum, bringing up her children, working every available hour to pay the energy bills and provide a hot meal each night for her children will not benefit. The hard-pressed couple on low pay, juggling part-time work and childcare, will not see anything from David Cameron’s announcement.

A one-earner family who live on £40,000 a year will gain, but a two-earner couple on £20,000 each won’t. If a man leaves his wife, leaving his children behind and remarrying, he would benefit from this policy, whilst the mother of his children would not.

A couple exchange wedding rings at a wedding ceremony Credit: Geoff Kirby/Press Association

It’s a policy which is about division and stigma - not the One Nation approach we need. Many parents will think David Cameron is telling them they are second class, not worthy of his support. But they are bringing up children too. We can’t simply forget about or leave behind the millions of parents who may not be married, but love their children and work tirelessly to provide for them.

Even for the few that benefit, they may very well wonder why they receive only £3.85 per week in recognition of the commitment they made to one another, whilst David Cameron gives £1,986 per week to the 13,000 people earning over £1 million pounds with his top rate of tax cut. It’s another policy which reveals David Cameron’s priorities - millionaires and not millions of families.

And this policy is another blow to David Cameron’s already feeble attempts to understand women. Mums have consistently lost out under this government. Child benefit and tax credits, payments that traditionally go to the mother, have all been heavily cut back.

For many mums, this has been a real blow, making it harder for them to support their children and taking away independent income. This policy will not solve that problem, as it will usually be paid into their husband’s account. The Tories are taking a lot from the purse and putting a little bit back into the wallet.

Labour to guarantee care for primary school children from 8am to 6pm. Credit: Edmond Terakopian/PA Wire

Most families are already struggling with the cost of living crisis and the clobbering they have received from this Tory-led government. Energy bills are up and prices have risen faster than wages in 38 out of 39 months of David Cameron being in Downing Street. Families with children have been hardest hit by Government policies already - losing £7 billion in things like child benefit and tax credits.

At a time when millions of people are facing a cost of living crisis we should be helping all families and not just some. That's what Labour set out this week with plans to freeze energy bills and expand free childcare for working parents.

I am married and the day I walked down the aisle was one of the most important and happiest of my life. But when David Cameron says ‘Love is love. Commitment is commitment’, he doesn’t mean this for everyone. In Cameron’s Britain, some people’s love and commitment - to their partner and to their children - simply don't count.

Rachel Reeves is shadow chief secretary to the Treasury. Her views do not necessarily reflect those of ITV News.

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