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| Labour wants welfare to help those who 'play their part' | Labour wants welfare to help those who 'play their part' |
| (35 minutes later) | |
| Labour is considering changing the welfare system to reward those who give more to their community, the shadow work and pensions secretary has said. | Labour is considering changing the welfare system to reward those who give more to their community, the shadow work and pensions secretary has said. |
| Writing in the Observer, Liam Byrne said the party wanted to "strengthen the principle of contribution". | Writing in the Observer, Liam Byrne said the party wanted to "strengthen the principle of contribution". |
| His comments follow an overhaul of taxes and benefits, including a below-inflation cap of 1% on working-age benefits and tax credit rises. | His comments follow an overhaul of taxes and benefits, including a below-inflation cap of 1% on working-age benefits and tax credit rises. |
| The prime minister told the Sun the changes had "fairness" at their heart. | The prime minister told the Sun the changes had "fairness" at their heart. |
| Change needed | Change needed |
| In his article, Mr Byrne criticised the coalition for failing to support "working families and those in real need", insisting that Labour's approach to reforming welfare would be "very different". | In his article, Mr Byrne criticised the coalition for failing to support "working families and those in real need", insisting that Labour's approach to reforming welfare would be "very different". |
| "Instead of seeking to divide people, we want to ensure everyone plays their part so we can rebuild Britain together," he said. | "Instead of seeking to divide people, we want to ensure everyone plays their part so we can rebuild Britain together," he said. |
| "We must do more to strengthen the old principle of contribution | "We must do more to strengthen the old principle of contribution |
| "There are lots of people right now who feel they pay an awful lot more in than they ever get back. That should change." | "There are lots of people right now who feel they pay an awful lot more in than they ever get back. That should change." |
| He added Labour would start by "letting councils give priority in social housing allocations to those who work and contribute to their community". | He added Labour would start by "letting councils give priority in social housing allocations to those who work and contribute to their community". |
| The BBC's political correspondent Carole Walker said Labour had been under pressure to say what it would do to overhaul the welfare system, after criticising many of the government's policies. | The BBC's political correspondent Carole Walker said Labour had been under pressure to say what it would do to overhaul the welfare system, after criticising many of the government's policies. |
| A senior Labour source confirmed the party was looking at wider changes based on the contributory principle as part of its policy review - although discussions were at an early stage - our correspondent added. | A senior Labour source confirmed the party was looking at wider changes based on the contributory principle as part of its policy review - although discussions were at an early stage - our correspondent added. |
| Restoring fairness | Restoring fairness |
| Meanwhile, Mr Cameron told the Sun the welfare system had lost its way and benefits had become a "lifestyle choice" for some - causing resentment. | Meanwhile, Mr Cameron told the Sun the welfare system had lost its way and benefits had become a "lifestyle choice" for some - causing resentment. |
| He insisted it was "crazy" that certain claimants could have a bigger income on benefits than if they had a job. | He insisted it was "crazy" that certain claimants could have a bigger income on benefits than if they had a job. |
| "So this month we are making some big changes," he added. | "So this month we are making some big changes," he added. |
| "They are changes that have a simple principle at their heart: we are restoring the fairness that should lie at the very heart of our tax and welfare systems." | "They are changes that have a simple principle at their heart: we are restoring the fairness that should lie at the very heart of our tax and welfare systems." |
| This week, a series of changes to benefits and taxes have come into force. | This week, a series of changes to benefits and taxes have come into force. |
| Most tax credits and working age benefits are being increased by 1% - below the rate of inflation - while pensioners are getting a larger rise in the state pension, which is going up by 2.5% to £110 a week. | Most tax credits and working age benefits are being increased by 1% - below the rate of inflation - while pensioners are getting a larger rise in the state pension, which is going up by 2.5% to £110 a week. |
| On Saturday, the personal allowance - which is the amount that most people can earn before they pay income tax - rose to £9,440. | On Saturday, the personal allowance - which is the amount that most people can earn before they pay income tax - rose to £9,440. |
| And the top rate of income tax was also reduced from 50p in the pound to 45p for people with incomes of more than £150,000. | And the top rate of income tax was also reduced from 50p in the pound to 45p for people with incomes of more than £150,000. |
| Also from 6 April, the amount pensioners can earn without paying tax will no longer rise with inflation, giving rise to accusations of a "granny tax". | Also from 6 April, the amount pensioners can earn without paying tax will no longer rise with inflation, giving rise to accusations of a "granny tax". |