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Do state-funded fish fingers make up for the Chancellor’s other plans for your children…

Has George Osborne’s Autumn Statement helped or hindered your kids?

George even hosts tea parties at (Stefan Rousseau/PA Wire)

George Osborne may look a little like the Child Catcher from ‘Chitty Chitty Bang Bang’, but his Autumn Statement today made him sound more like Father Christmas.

He’s promised free school meals for all school children in reception, meaning kids will get a free hot lunch at school up to the age of seven.

While state-funded fish fingers are a definite bonus, just how many of the coalition’s policies and cuts were similarly child friendly.

We take a look:

Cut child benefit

Higher earners have now had almost a year without their child benefit, which the Government limited for households where one worker earns more than £50,000.

Critics argued that this was unfair to families with one stay-at-home parent, as two workers earning £49,000 each would keep it but one parent earning £51,000 would be penalised.

When one adult earns more than £50,000 a year, the payment is reduced and once they earn £60,000, they cease to qualify at all.

Introduced the benefit cap

The Government rolled out a benefit cap earlier this year, which includes child benefit and child tax credit. It’s set at £500 a week per family, regardless of how many children they have.

Critics have asserted that this and other cuts in benefits will force more children into poverty and mean the Government struggles to meet its goal of ending child poverty by 2020.

Boosted tax-free childcare

The Government is planning a change in childcare policy that will see families with two working parents benefit from tax breaks on childcare.

Once it’s operational – and the Government wants it in place by 2015 – it could be worth up to £1,200 a child. So a working family with two kids could save up to £2,400 a year.

However, it’s been argued that the scheme will help higher income families more, while not benefitting families where one parent remains at home to bring up children at all.

Cut Sure Start funding

Funding cuts have led to many Sure Start centres closing. These offered support and childcare to many families, particularly in more deprived areas.

There are 576 fewer Sure Start centres since the last general election, with three more closing every week on average. That has contributed to a fall of 35,000 childcare places, which Labour says is partly to blame for rising nursery costs.

The average cost of a nursery place has risen 30% since the coalition came to power.

Cut Education Maintenance Allowance

One of the most controversial of the coalition’s cuts was the Education Maintenance Allowance (EMA), a payment of up to £30 a week given to low-income students if they stayed on at school or college.

The payments were to fund books, transport and other equipment needed for courses, and they also served as an incentive never to skip class – students had to attend in order to qualify.

However, in its battle with the deficit, the Government replaced the £560million scheme with a £180million fund for low-income students, most of which is given to schools and colleges to be handed out at their discretion.

Cut child trust funds

One of the earliest decisions the coalition Government made was to scrap the state-sponsored child trust funds.

These had seen children given £500 to invest before they turned seven, to encourage parents to save. That was scaled right back and then scrapped within a few months.

Launched Junior ISAs

However, while the free money bonanza stopped, the coalition did then introduce Junior ISAs, to allow families to save into tax-free accounts for children. That benefitted six million children straight away, with 800,000 more eligible each year after.

Cutting down the deficit


Of course, there’s one thing that Osborne would be adamant will benefit today’s children, and that’s reducing the deficit.

Whenever this coalition Government makes cuts to services or welfare, it’s always keen to point out that it is unfair to balance today’s books by borrowing and piling debt onto future generations.

Longer for less

A child born today will probably not get state pension until they are 72, MGM Advantage calculates. That’s because the state pension age will now be tied to life expectancy.

While is sounds sensible now, having to pay tax for far while today’s pensioners get the same benefit for less time working is hardly ‘child friendly’.

Easier to work younger

Also announced today was an increase of 20,000 apprenticeships, while businesses employing under-21s won’t have to pay National Insurance for those employees.

Not something that will help tomorrow’s graduates a lot, but for those keen to start work young without going to university, the opportunity to work should improve. Work that will continue far longer before they get state pension.