First, it has undermined confidence in the Government's commitment to preventive work. The green paper emphasised the need for services that stop children moving into crisis when they face unexpected challenges. Preventive services have always been most vulnerable to emergency cuts in budgets. So was this stress upon prevention just a sham?
Second, it has threatened the already limited focus on children aged five to 13 - the crucial "middle years" where there is still scope to divert children from a path of risk. When Gordon Brown set out the case for the Children's Fund, he said it would start to plug the gap. Can we be sure that the plug will remain?
Third, it has undermined the commitment to consulting children. A distinctive feature of Children's Fund programmes has been the way in which children's views have been sought. If these programmes are the first to be cut, is the Government's pledge to consult children and young people tokenistic?
Fourth, it has threatened the trust of the voluntary sector. Government rhetoric has emphasised the vital role the sector plays in running community programmes. But both major players and small groups feel abused by the budget shenanigans of recent weeks.
The new directorate started with great promise and with much goodwill within the children's world. This disastrous episode threatens to undermine efforts to improve the way in which the sector works together. Margaret Hodge has got the budget temporarily back on track. Now she needs to repair the breakdown in trust.
