The cuts

AnnieM, May 25, 2010

Whitehall yesterday announced the first phase of the dreaded cuts ahead of the Emergency Budget next month. The total cuts to be implemented amount to £6.2billion, which despite the substantial sum merely dents the total deficit which stands to date at £156billion. Depressing, huh? So for your viewing pleasure (displeasure is probably closer to the mark) here follows the Jobsgopublic at-a-glance summary of the announced cuts:

The cuts

  • Child Trust Funds are to be scrapped as early as January 2011. The scheme which pays parents £250 at a child’s birth also pays an additional sum when the child reaches seven years old. The scheme was set up by the previous government to encourage parents to invest for their children, who have access to their money from the age of 18. Payments to existing Child Trust Funds will be reduced from August before being abolished by the following year.
  • Recruitment in the civil service will be frozen.
  • University places will cut from 20,000 to 10,000
  • The British Educational Communications and Technology Agency(BECTA) Quango will be closed.
  • Local government grants will be significantly reduced (an estimated £1.2billion reduction). Local authorities will be expected to make cuts at their own discretion.
  • Department of Transport spending will be cut by £683m
  • Work and Pensions will have £535m of cuts
  • Future Jobs Funds are to be wound down and then abolished all together within the next twelve months. The funds guaranteed 18-24 year olds who had been unemployed for more than six months either paid work, apprenticeships or training.
  • £1000 incentive for employers to offer employment to candidates who have been out of work for six months or more will be stopped.
  • Department of Business, Innovation and Skills will see £836m of cuts, the biggest cuts to date.
  • IT Projects within the sector costing over £1m will be frozen or delayed.
  • Government advertising and marketing campaigns will be frozen unless absolutely essential.*

*All these cuts will be overseen by the newly created Efficiency and Reform Group


  • Frontline NHS services
  • Sure Start programme for the under 5s which aims to give every child the best possible chance in life through a holistic approach of improved childcare, health, early education and family support.
  • Education spending for 16-19 year olds.