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| Labour opposition to benefit squeeze irresponsible, say Tories | Labour opposition to benefit squeeze irresponsible, say Tories |
| (about 9 hours later) | |
| The government has set down a welfare trap for Labour, publishing plans for a three-year benefit squeeze limiting increases to 1% a year and accusing the opposition party of irresponsibility for refusing to back the measure. | The government has set down a welfare trap for Labour, publishing plans for a three-year benefit squeeze limiting increases to 1% a year and accusing the opposition party of irresponsibility for refusing to back the measure. |
| A brief three-clause bill was published on Thursday and will be debated almost as soon as parliament returns on Tuesday 8 January. | |
| The government also announced it was delaying plans to impose a nationwide £500-a-week welfare benefit cap, due to start next April. | The government also announced it was delaying plans to impose a nationwide £500-a-week welfare benefit cap, due to start next April. |
| The Department for Work and Pensions said the full scheme would not now start until the summer and, in the meantime, four London boroughs would implement the cap to test it in a controlled live environment. | The Department for Work and Pensions said the full scheme would not now start until the summer and, in the meantime, four London boroughs would implement the cap to test it in a controlled live environment. |
| The four selected boroughs are Bromley, Croydon, Enfield and Haringey, the councils with the highest proportion of potential claimants affected by the cap. The delay may suggest the government is realising that the cap could have unexpected consequences. | The four selected boroughs are Bromley, Croydon, Enfield and Haringey, the councils with the highest proportion of potential claimants affected by the cap. The delay may suggest the government is realising that the cap could have unexpected consequences. |
| George Osborne, the chancellor, plans to portray Labour as being on the side of welfare claimants rather than hard-working families. The Tories point out that Labour is rejecting this benefits squeeze at a time when it is supporting a one-year public sector pay freeze for those in work. | George Osborne, the chancellor, plans to portray Labour as being on the side of welfare claimants rather than hard-working families. The Tories point out that Labour is rejecting this benefits squeeze at a time when it is supporting a one-year public sector pay freeze for those in work. |
| Labour counters that the distinction is false since 60% of those affected by the benefits squeeze are in work. The 1% benefits rise will cover 2013-14 to 2015-16. | Labour counters that the distinction is false since 60% of those affected by the benefits squeeze are in work. The 1% benefits rise will cover 2013-14 to 2015-16. |
| Benefits for carers and disability benefits such as attendance allowance, the disability elements of tax credits, disability living allowance and the support component of employment and support allowance will continue to be uprated in line with price inflation, while the basic state pension is also protected. | Benefits for carers and disability benefits such as attendance allowance, the disability elements of tax credits, disability living allowance and the support component of employment and support allowance will continue to be uprated in line with price inflation, while the basic state pension is also protected. |
| The benefits curbs will release savings worth more £1.9bn by 2015-16. The bill will cover the two years from 2014-15, since the benefits squeeze for the coming year has already been agreed by parliament. | The benefits curbs will release savings worth more £1.9bn by 2015-16. The bill will cover the two years from 2014-15, since the benefits squeeze for the coming year has already been agreed by parliament. |
| The work and pensions secretary, Iain Duncan Smith, said: "Labour has been totally irresponsible. They play games and oppose every single measure to bring the benefits bill down. They even oppose universal credit, something they should applaud." | The work and pensions secretary, Iain Duncan Smith, said: "Labour has been totally irresponsible. They play games and oppose every single measure to bring the benefits bill down. They even oppose universal credit, something they should applaud." |
| Liam Byrne, the shadow work and pensions secretary, said Labour "will not support a bill that does nothing to create a single new job yet punishes those who work". He added: "The Tories have failed on jobs the dole queue is set to lengthen and the benefits bill is set to soar by an unbelievable £13.6bn higher than forecast. Yet now they are asking Britain's strivers to pick up the tab so the government can hand out a tax cut to millionaires." | Liam Byrne, the shadow work and pensions secretary, said Labour "will not support a bill that does nothing to create a single new job yet punishes those who work". He added: "The Tories have failed on jobs the dole queue is set to lengthen and the benefits bill is set to soar by an unbelievable £13.6bn higher than forecast. Yet now they are asking Britain's strivers to pick up the tab so the government can hand out a tax cut to millionaires." |
| Stephen Timms, the shadow employment minister, acknowledged that Labour was backing a fair public sector pay freeze. He told BBC's Daily Politics: "We've supported that 1% cap but what we've said is that it should be done in a fair way so that those who are the highest paid get less than a 1% increase, those who are lower-paid get more than a 1% increase." | Stephen Timms, the shadow employment minister, acknowledged that Labour was backing a fair public sector pay freeze. He told BBC's Daily Politics: "We've supported that 1% cap but what we've said is that it should be done in a fair way so that those who are the highest paid get less than a 1% increase, those who are lower-paid get more than a 1% increase." |
| Timms argued that families in work would take a big hit from the benefits changes. "At the very moment the benefits squeeze starts, the government is going to give a very big tax handout to the very highest paid, those who are earning £150,000 a year, so if you're earning more than £1m, next April you will get a tax cut of over £100,000." | Timms argued that families in work would take a big hit from the benefits changes. "At the very moment the benefits squeeze starts, the government is going to give a very big tax handout to the very highest paid, those who are earning £150,000 a year, so if you're earning more than £1m, next April you will get a tax cut of over £100,000." |
| A family on average earnings with two children will be £534 a year worse off once the increase in the tax allowance, and reduced uprating of working tax credits are taken into account. | A family on average earnings with two children will be £534 a year worse off once the increase in the tax allowance, and reduced uprating of working tax credits are taken into account. |
| Richard Hawkes, chief executive of the disability charity Scope, said: "The 'benefit scrounger' rhetoric has gone too far. Some people need benefits. Get over it. The vast majority of disabled people need support. They aren't feckless, they aren't workshy and they aren't scroungers. Benefits mean disabled people can do things everyone else takes for granted. Every Paralympic athlete will have had some state support at some stage. This bill doesn't protect disabled people. In fact, it cuts support for the many disabled people who are looking for work." | Richard Hawkes, chief executive of the disability charity Scope, said: "The 'benefit scrounger' rhetoric has gone too far. Some people need benefits. Get over it. The vast majority of disabled people need support. They aren't feckless, they aren't workshy and they aren't scroungers. Benefits mean disabled people can do things everyone else takes for granted. Every Paralympic athlete will have had some state support at some stage. This bill doesn't protect disabled people. In fact, it cuts support for the many disabled people who are looking for work." |