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Benefits: revive 'principle of contribution' says Labour Benefits: Revive 'principle of contribution' says Labour
(35 minutes later)
Labour wants to "strengthen the old principle of contribution" in the benefits system, the shadow work and pensions secretary says.Labour wants to "strengthen the old principle of contribution" in the benefits system, the shadow work and pensions secretary says.
Many people "feel they pay an awful lot more in than they ever get back", Liam Byrne wrote in the Observer.Many people "feel they pay an awful lot more in than they ever get back", Liam Byrne wrote in the Observer.
He also said "people who work and contribute to their community" should get priority in social housing.He also said "people who work and contribute to their community" should get priority in social housing.
He criticised recent tax and welfare changes, but David Cameron told the Sun the moves were about "fairness".He criticised recent tax and welfare changes, but David Cameron told the Sun the moves were about "fairness".
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".
Change needed
"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.
He added that Labour would start by "letting councils give priority in social housing allocations to those who work and contribute to their community". "There are lots of people right now who feel they pay an awful lot more in than they ever get back." he said.
"That should change. We should start by letting councils give priority in social housing allocations to those who work and contribute to their community."
BBC 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.BBC 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
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".