THE Government are implementing or are planning to implement a couple of new policies in a bid to win back votes whilst claiming that they are beneficial to the poorest within society. But what are those policies? Firstly, the Conservative childcare discount scheme is set to roll out nationally next month and new legislation to free people from “rip off” energy tariffs should be in operation next winter.
Who is likely to benefit from those policies and how? The policies show that Labour are doing their jobs as opposition as these are policies that aren’t necessarily something they would have done otherwise.
Devil is in the detail
Business minister, Claire Perry, has revealed plans to tackle the big energy companies and their rip-off price tariffs. New legislation being introduced has been said will protect 11 million customers by allowing regulator Ofgem to limit the amount companies can charge for standard variable tariffs. The Domestic Gas and Energy Bill has significant support across the commons and will likely to be in place by the end of the year. The law will limit the cost of those tariffs until 2020 and could be extended on an annual basis until 2020. This will affect 2 million vulnerable households next winter.
The bill comes after a select committee put pressure on the government at the start of February, stating that they should introduce the energy cap as soon as possible to stop customers being overcharged.
The cap is a positive one but is a smaller drop in the issue of energy prices rises consumers are raising, also, most companies are moving away from the variable tariffs, in favour of fixed tariffs which the cap doesn’t affect.
Next month begins the roll-out of the Tax-Free Childcare scheme, which gives back up to £500 every three months per child aged under-12.
The problem is that it effects people disproportionately, the change will allow parents who earn up to £100,000 each a chance to save 20% on the cost of childcare, this includes those who go to fee-paying private schools. To claim the maximum of £2000 per child, parents would have to spend £10,000. The parents who spend more on childcare will get more back, meaning the wealthiest will be the ones who will Benefit from the scheme as a lot of poorer people rely on family members due to the high costs of childcare.
