So now it’s started. Within a couple of weeks of taking office, and even before we hear the Queen’s Speech tomorrow, the new government’s cuts to funding for families are already underway. Today we hear that the government intends to introduce secondary legislation to scale back government payments due to Child Trust Funds from 1 August 2010. From that date, payments at birth will be reduced from £250 to £50 for better off families, and from £500 to £100 for lower income families; and payments at age seven stopped. What’s more, the government intends to introduce primary legislation to stop all payments from 1 January 2011 – just seven months from now.

This is just the sort of mean-spirited, below the radar cut we can expect to get used to now. Young people wouldn’t actually have received the money in their Child Trust Fund till they reach age 18 – so today even the first potential recipients won’t yet have reached their teens. By the time families notice what they’ve lost, the blame that attaches to George Osborne for this ungenerous decision will have been long forgotten. But for two parties that have made such play of improving social mobility, this is a cynical step. The evidence that having some assets behind you as you start out on adult life makes an enormous difference has been casually brushed aside. For low-income families in particular, who struggle to find even modest sums they can save for the future, this will be a big blow.

But the axing of the Child Trust Fund also tells us how little regard this government has for the wider concept of universal support. The Child Trust Fund was one of the best examples of Labour’s philosophy in government of ‘progressive universalism’ – all received something, but the poorest received more. That’s important in reducing stigma and binding society together, but it’s already clear from this early measure that the new government wants to residualise spending on financial support for families – expect more and more targeting to be the order of the day. So some funding will be recycled for disabled children – a small and important concession, but one that exemplifies the government’s approach to supporting only those it believes deserve help. Labour MPs must be vigilant – or risk this first measure as coming to be seen as just the thin end of a very thick wedge.

Kate Green is MP for Stretford and Urmston and former chief executive of the Child Poverty Action Group

Photo: yoshing BT 2009