Short 15 mark policy plans

Homes
-New government backed mortgage guarantee – effectively the tax payer underwrites the risk of up to 20% of mortgage values
-Budget 2013 declared changes where you can now buy a home up to £600,000 with only a 5% deposit – the treasury says this will support building 190,000 new homes but it also risks creating a housing bubble and Labour calls it a ‘subsidised mortgage for the rich’ as they buy 2nd homes. Balls goes on to compare this to the bedroom tax which hits the poorest
-Help to Buy scheme reminds us of Thatchers Right to Buy scheme and is a loan scheme – Liberal peer Lord Oakeshott says the gov has done well with private housing but needs to turn to public housing situation

Childcare
-Working parents get 20% tax relief on childcare costs which equate £1,200 per child
-Tax free childcare vouchers – 20% off first 6k of childcare costs
-£200m for low income families so 85% of childcare costs are met under new universal credit 2016 – more generous than the 70% under the existing tax credits system but the resolution foundation says only 4 in 10 low paid families will actually see this 85% met by the government and that the criteria means low income families may miss out

Pensions
-400,000 more people are made eligible for the basic pension
-New flate rate of £144 a week means thousands more qualify including 85,000 women for the first time
-6 million workers to face higher NI payments as the practice of ‘contracting out’ the state second pension to employers is ended – basically with this if you were going to retire soon you could contract out your money to your pension scheme while paying less NI – this is ending – hitting richer people more.
-Ending this contracting out will generate an extra £5.5bn in national insurance contributions

Bank lending
Funding for Lending scheme gives banks cheap funds in return for commitments to lend to business and households but there has been a 2.4bn contraction in lending in the past year. Scheme is to be extended and ‘put on steroids’ as the credit creation programme is failing small business
-State backed business bank is to be created as credit is not getting through to smaller banks. Designed to widen sources of finance for small business, this spring it will invest £300m alongside private backers
Project Merlin was an agreement between the government and 4 major high street banks about banking activity incl. lending and pay and bonuses

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