SHOCK LEAK: Rayner Memo Targets Middle Class Child Benefit Amidst Inflation Crisis

Inflation Bites Hard: BAME Communities Feel the Squeeze as Benefit Cuts Loom-A political firestorm has erupted following the alleged leak of a bombshell memo from Deputy Prime Minister and Housing Secretary Angela Rayner, reportedly pushing for a controversial clawback of child benefit payments from middle-class families. The revelation comes at a particularly sensitive time, as the UK grapples with a persistent inflation crisis that is disproportionately impacting diverse communities across the nation, Daily Dazzling Dawn understands.

The leaked document, reportedly seen by journalists, outlines "ten proposals that would be popular, prudent, and would not raise taxes on working people," but also includes "more radical and new proposals." Among these "radical" suggestions was the contentious idea of reclaiming child benefit from households where the highest earner falls between £50,000 and £80,000 annually. This move, Rayner's team reportedly argued, could generate a substantial £600 million in annual savings.

Currently, parents can claim £1,345.60 per year for their eldest or only child and £897 per year for additional children. However, under rules introduced by former Chancellor Jeremy Hunt, those with a high earner earning between £60,000 and £80,000 are subject to the High Income Child Benefit Charge, losing the benefit entirely if earnings exceed £80,000. Rayner's alleged proposal would significantly lower the threshold at which this benefit is impacted.

The proposal has drawn sharp criticism from former Chancellor Jeremy Hunt, who warned against altering the current threshold. "This may look like a relatively minor budget measure but was one of the most popular things we did because it helped striving middle-class families struggling with childcare costs," Hunt stated. He added, "Abandoning them would finally confirm that far from being a New Labour government, this is a traditional anti-aspiration Old Labour government."

Inflation's Heavy Toll: BAME Communities Bearing the Brunt

The timing of this leaked proposal is particularly concerning given the ongoing cost of living crisis, exacerbated by persistent high inflation. While inflation impacts all segments of society, evidence suggests that British Bangladeshi, British Pakistani, British Indian, British South Asian, and other BAME communities are often hit hardest.

These communities frequently have a higher proportion of families working in sectors with less wage growth, facing higher energy bills for older housing stock, and with larger family sizes, meaning that any cut to benefits like Child Benefit could have a magnified effect. Rising food prices, energy costs, and stagnant wages mean that many striving families are already struggling to make ends meet, with disposable incomes shrinking at an alarming rate. For families who rely on every penny to cover essential costs, a reduction in child benefit could push them further into financial precarity.

The memo's other reported suggestions included making it more difficult for immigrants to receive Universal Credit and increasing the fee for using the NHS – proposals that were ultimately not adopted by the Chancellor, Rachel Reeves, for her Spring Statement.

Environment Secretary Steve Reed, when questioned about the memo on BBC Breakfast, insisted the Cabinet remained "united behind the government's plan for change." A government spokesperson declined to comment on leaks.

The apparent leak was swiftly seized upon by Tory leader Kemi Badenoch during her recent PMQ spar with Sir Keir, claiming he had "lost control of his Cabinet." The Prime Minister, however, countered by highlighting the Deputy Prime Minister's work on housing, economic growth, and workers' rights, defending her overall contribution to the government's agenda.

The leaked memo has ignited a fierce debate about the government's economic priorities and its approach to supporting families during a period of immense financial strain, especially for those communities already disproportionately affected by the ongoing inflation crisis. The coming weeks will likely see continued scrutiny of these proposals and their potential impact on millions of households across the UK.