Ed Balls to set out plan to freeze child benefit
Posted: Sun Sep 21, 2014 11:14 pmShadow Chancellor to say all sections of society will have to make sacrifices if Labour comes to power
Child benefit would be reduced in real terms by an incoming Labour government, Ed Balls will announce on Monday as the party tries to convince voters it is ready to make painful cuts in order to balance the nation’s books.
In his speech to the Labour Party conference in Manchester, the shadow Chancellor will risk a backlash from women voters by arguing that all sections of society will have to make sacrifices so Labour could clear the deficit by 2020.
Under his controversial plan, child benefit would rise by only 1 per cent in the first two financial years if Labour wins power at next May’s general election – less than the retail price index, currently 2.4 per cent. The £400m saved would be used to help cut the deficit.
Mr Balls will also announce that he would cut the salaries of all government ministers by 5 per cent from next May. Their pay would be frozen until the nation’s books are balanced, which Labour has pledged to do by 2020. This would save about £300,000 immediately and more in future years.
