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Labour: Miliband outlines 'cost of living crisis' plans Labour: Miliband outlines 'cost of living crisis' plans
(about 1 hour later)
Labour leader Ed Miliband has set out plans to tackle what he calls the UK's "cost of living crisis" after arriving in Brighton for the party conference. Labour leader Ed Miliband has set out plans to tackle what he calls the UK's "cost of living crisis", after arriving in Brighton for the party conference.
Speaking in the city, he promised to reverse controversial changes to housing benefit and extend childcare. Mr Miliband promised to reverse controversial changes to housing benefit and extend childcare.
He also pledged to "make work pay for the workers of Britain". He also pledged to increase the minimum wage to help with the cost of living.
Meanwhile a senior party figure has said people earning £60,000 were 'not rich' and those earning up to £150,000 would not face tax rises under Labour. Meanwhile a senior party figure has said people earning £60,000 were "not rich" and those earning up to £150,000 would not face tax rises under Labour.
Addressing supporters and members of the public in a Brighton street, Mr Miliband said he wanted to "send a very clear signal" that it was wrong that millions of working people in the UK could not afford to bring up their families properly. Mr Miliband said he wanted to "send a very clear signal" that it was wrong that millions of working people in the UK could not afford to bring up their families properly.
He said the housing benefit cut - affecting social tenants in England, Scotland and Wales deemed to have spare bedrooms - would be scrapped. Critics have called the cut a "bedroom tax". The Labour leader said:
"Abolishing the bedroom tax. Strengthening the national minimum wage. Childcare there for parents who need it. That's what I mean by tackling the cost of living crisis at this conference. That's what I mean by a government that fights for you," he said. Mr Miliband said the housing benefit cut - affecting social tenants in England, Scotland and Wales deemed to have spare bedrooms - would be scrapped.
The Labour leader said the national minimum wage was "one of the proudest achievements of the last Labour government" but it was falling behind under the coalition government and pledged to strengthen it. Earlier on Saturday, shadow communities and local government secretary Hilary Benn told the BBC Radio 4's Today programme the housing benefit change was a "cruel and unfair policy" which "undermined families and communities" and did not work because there were no smaller properties for people to move in to.
If the national minimum wage had risen in line with the cost of living it would be 45p an hour higher than the current level, which is due to rise next month from £6.19 to £6.31, he said. Critics have called the cut a "bedroom tax" however the government said it was tackling a "spare room subsidy" which was unavailable in the private room sector, and that the £23bn-a-year housing benefit bill must be cut.
Mr Miliband told a crowd in Brighton: "Abolishing the bedroom tax. Strengthening the national minimum wage. Childcare there for parents who need it. That's what I mean by tackling the cost of living crisis at this conference. That's what I mean by a government that fights for you."
The Labour leader added that the national minimum wage was "one of the proudest achievements of the last Labour government" but it was falling behind price rises under the coalition government. He pledged to strengthen it.
If the national minimum wage had risen in line with the cost of living it would be 45p an hour higher than the current level, which is due to rise next month from £6.19 to £6.31, he explained.
Tory chairman Grant Shapps said: "Conservatives back the minimum wage.
"But if Ed Miliband was really on the side of hardworking people then he would have supported our welfare changes to ensure work always pays and should have voted in favour of halving the amount of income tax someone working full-time on the minimum wage pays."
Mr Miliband criticised Mr Cameron's record as one of "tax cuts for millionaires, tax cuts for hedge funds, tobacco lobbyists in Downing Street".Mr Miliband criticised Mr Cameron's record as one of "tax cuts for millionaires, tax cuts for hedge funds, tobacco lobbyists in Downing Street".
He said "across the country, from all walks of life, people are facing this cost of living crisis" and there was always something that could be done "if you have the political will".
It was the "forgotten wealth creators - the people who put in the hours, who do the work, who do two jobs, who do the shifts" that should be supported, he said.It was the "forgotten wealth creators - the people who put in the hours, who do the work, who do two jobs, who do the shifts" that should be supported, he said.
"That's how we change Britain, that's what a Labour government is going to do, that's how we build One Nation," he added.
'Cruel and unfair policy''Cruel and unfair policy'
The speech came after Rachel Reeves, deputy to shadow chancellor Ed Balls, told the Daily Telegraph people earning £60,000 were not "rich" and a Labour government would only raise taxes for the "privileged few" on £150,000 or more a year.The speech came after Rachel Reeves, deputy to shadow chancellor Ed Balls, told the Daily Telegraph people earning £60,000 were not "rich" and a Labour government would only raise taxes for the "privileged few" on £150,000 or more a year.
"I think the focus should be on those privileged few right at the top, and that's not people earning £50,000 or £60,000 a year. "I think the focus should be on those privileged few right at the top, and that's not people earning £50,000 or £60,000 a year," she said.
"We don't have any plans or desire to increase taxes amongst people in that band of income," she said.
A Liberal Democrat document leaked earlier this week suggested the party was considering increasing taxes for people earning more than £50,000.A Liberal Democrat document leaked earlier this week suggested the party was considering increasing taxes for people earning more than £50,000.
Senior Lib Dem Vince Cable said the proposal was not government policy and he did not know where it had come from.Senior Lib Dem Vince Cable said the proposal was not government policy and he did not know where it had come from.
The average annual earnings of full-time workers in the UK was £26,500 in the year to April 2012, according to figures published by the Office for National Statistics in its annual survey of hours and earnings last November. The average annual wage of full-time workers in the UK was £26,500 in the year to April 2012, according to figures published by the Office for National Statistics in its annual survey of hours and earnings last November.
Earlier on Saturday, shadow communities and local government secretary Hilary Benn told the BBC Radio 4's Today programme the housing benefit was a "cruel and unfair policy" which "undermined families and communities" and did not work because there were no smaller properties for people to move in to. Labour has also promised to make childcare a key part of their manifesto.
The government argues it ends "spare room subsidies" unavailable in the private sector, and that the £23bn-a-year housing benefit bill must be cut. Of their plan for schools to extend their opening times, Mr Miliband said it "doesn't make sense in this century" that some schools still close in mid-afternoon when parents are usually at work.
The BBC's political correspondent Ben Wright said it was "one of the first policies of what is going to be a pretty crucial conference" for Mr Miliband. Shadow home secretary Yvette Cooper said "most jobs don't fit neatly with school hours".
He said there was a "slightly glum mood" within Labour at the moment, with critics within the party saying it urgently needs clear policies and to be doing better in the polls to have any chance of winning the next election. She added: "We know parents with early starts, or commutes to work, need childcare they can rely on.
Meanwhile, Ms Cooper told the Guardian childcare would be a "top priority" for Labour's 2015 general election and it should be seen as just as important as infrastructure investments such as transport. "Childcare is now as vital to our economic infrastructure as transport, housing or IT."
She said Labour would guarantee all parents of primary school children "wraparound" childcare from 8am to 6pm.
At present some schools offer breakfast clubs and after-school clubs to help working parents, but Labour says many of these have closed due to government cuts.At present some schools offer breakfast clubs and after-school clubs to help working parents, but Labour says many of these have closed due to government cuts.
Labour deputy leader Harriet Harman told the Independent she is "determined" mothers and fathers should be entitled to transfer part of their flexible parental leave to grandparents, enabling them to return to work. Labour deputy leader Harriet Harman told the Independent she was "determined" mothers and fathers should be entitled to transfer part of their flexible parental leave to grandparents, enabling them to return to work.
Responding to Labour's plans in the Guardian, Treasury minister Sajid Javid said: "Despite promising 'discipline' on borrowing, Ed Miliband has shown he is too weak to deliver. Nothing has changed - it's the same old Labour."Responding to Labour's plans in the Guardian, Treasury minister Sajid Javid said: "Despite promising 'discipline' on borrowing, Ed Miliband has shown he is too weak to deliver. Nothing has changed - it's the same old Labour."