Chi calls for a halt to tax on mums as millionaires receive a tax cut
Chi Onwurah MP for Newcastle Central said:
“ The government is to impose a £180 ‘New mother’s Tax’ on working women at the same time as reducing the tax bill of millionaires by £100,000.
“ The Tories are giving a tax cut to millionaires at the same time as thousands of new mums will face yet another blow to family budgets. The restriction on statutory maternity pay to a 1% annual increase, which is taking effect this April means that by 2015 maternity pay will effectively be cut by £180 a “mummy tax” on working women.
She believes that the nearly 1,400 new mums in Newcastle Central this year need a government that is on their side:
“ While David Cameron promised he would lead the most family-friendly Government ever, reality shows he is leaving new mums stranded.
“ Families shouldn’t have to pay the price of the coalition’s failed economic policies – and especially not working mums, who already face tough financial pressures when they have a new baby. Real terms cuts to maternity pay for many will be the final straw.”
Ms Onwurah points out that new mothers are already amongst the hardest hit by the coalition’s tax and benefit changes:
“ On top of the real terms cuts to child benefit and tax credit changes faced by all parents including child benefit freezes, reductions in support for childcare and frozen tax credits new mums have already faced the scrapping of the Health in Pregnancy Grant; the restriction of the Sure Start Maternity Grant; and the scrapping of the baby addition to the Child Tax Credit.
Figures compiled by the House of Commons Library have now confirmed that low paid new mums will lose £1,300 during pregnancy and the baby’s first year from cuts to pregnancy support, tax credits and real terms cuts to maternity pay. They are also losing a further £422 from cuts to child benefit over the same period.
Ms Onwurah added: “This £180 Mummy Tax is a slap in the face from a Government that thinks that millionaires need more help than mums. David Cameron has no idea what it is like for real people trying to juggle a family budget.”