At a glance, the Budget seems like a much needed source of relief for many families and children across Britain.
Indeed, with George Osborne's announcement that he would be softening the withdrawal of child benefit for those earning just over £43,000 with a new taper the Government has managed to deal with the serious problem it had created with the creation of a cliff edge for some families. Furthermore in a love letter to the Liberal Democrats, the Chancellor announce that the Government would increase the personal tax allowance by largest increase in the level of the personal allowance in both cash and real terms for the last thirty years up to £9,205.
As said, you might be forgiven for thinking these will act as a welcome relief for low income families.
Upon closer inspection though, the unfortunate reality is that this Budget could have done more and gone further to help hard pressed working families. With the spiraling cost of living many families would have been looking to this budget for much needed relief. The reality is that the increase in the tax allowance will be cancelled out by future cuts that are set to hit the poorest working families next month. When seen in tandem with the Government's reluctance to increase benefits more generously and provide added support for childcare costs this Budget falls short of really helping hard pressed working families.
With government sticking to its commitment to cut the deficit the Treasury have been keen to stress the Budget's cost neutrality. However to achieve this it would appear that grandparents are having to pay the price. Many families rely upon the generosity of older generations but in the wake of this budget many will find it increasingly challenging to continue to offer financial support to relatives.
Last year Alan Milburn, the Government's child poverty and social mobility tsar, denounced the coalition's shared aim of eradicating child poverty by 2020 as 'a fantasy'. Concurrently, findings from the Institute for Fiscal Studies indicate that poverty could be set to rise from to 2020 making the challenge of meeting the target set out in the Child Poverty Act even more daunting. The Government could have signaled their intent to do all they can to achieve this legally binding target through this budget but sadly, this has proved an opportunity missed.
Raising the personal income tax allowance and tapering child benefit will be welcomed by some but increasing the childcare element of working tax credits and uprating benefits by a more generous measure of inflation would have done far more to help families as they continue to face tough financial pressures. Ultimately, this Budget has failed to provide families with the vital support they really need at a time of immense financial stress and with many more challenges yet to come.