Labour criticise ‘mummy tax’

Labour MPs have warned that more than a million people, including working women, will be affected by a new tax being introduced.

More than a million people are going to be affected by a “mummy tax” on working women, Labour have stated. Research has been conducted by the Commons library into the coalition’s plans to cut maternity pay. The research has shown that, in real terms, these cuts mean that 1.2 million people, including fathers and children, will feel the knock-on effect of their family finances changing.

The figures brought to light by the research show that the 210,000 new mums, who rely solely on statutory support, will be hit hardest. This group makes up 60 per cent of the total people affected.

The Government’s plan is to cap statutory maternity pay and maternity allowance at a 1 per cent annual increase. Previous years would have seen these payments increase in line with inflation. It is estimated that, as a result of this cap, new mums will lose £180 annually by 2015.

The Labour party has launched a campaign against the planned maternity pay cuts. They called on Mr Cameron to “help mums not millionaires and delivered a “mothers’ day card” to the Prime Minister comparing the “mummy tax” with the coalition’s plans to give thousands of millionaires a tax cut worth £100,000.