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| Benefits freeze will hit 13m families, says the IFS – Politics live | Benefits freeze will hit 13m families, says the IFS – Politics live |
| (7 months later) | |
| 5.05pm BST | |
| 17:05 | |
| Evening politics summary | Evening politics summary |
| Today was about reactions to what was the first truly Tory budget in 20 years. | Today was about reactions to what was the first truly Tory budget in 20 years. |
| Impact of tax and benefit reforms between Jan 2010 and April 2019 (incl. universal credit): http://t.co/Gd3KOr1mA2 pic.twitter.com/LkDwX4SGzX | Impact of tax and benefit reforms between Jan 2010 and April 2019 (incl. universal credit): http://t.co/Gd3KOr1mA2 pic.twitter.com/LkDwX4SGzX |
| Thats it for today. You’ve been following the politics liveblog from me, Aisha Gani, and Frances Perraudin. | Thats it for today. You’ve been following the politics liveblog from me, Aisha Gani, and Frances Perraudin. |
| Thanks for your comments. | Thanks for your comments. |
| 4.43pm BST | |
| 16:43 | |
| Responding to the IFS analysis, Frances O’Grady the TUC general secretary said: | Responding to the IFS analysis, Frances O’Grady the TUC general secretary said: |
| “A higher minimum wage will bring gains for some, but for many working families the Budget is a wolf in sheep’s clothing. These households will find that their tax credit losses are much larger than any gains from higher pay. | “A higher minimum wage will bring gains for some, but for many working families the Budget is a wolf in sheep’s clothing. These households will find that their tax credit losses are much larger than any gains from higher pay. |
| She added: “Young workers, who will see no pay hike at all, can only lose.” | She added: “Young workers, who will see no pay hike at all, can only lose.” |
| “If the Chancellor hadn’t wasted so much on giveaways for the richest, tax credit cuts could have been avoided altogether. Low-income working households need decent pay and in-work benefits to make ends meet.” | “If the Chancellor hadn’t wasted so much on giveaways for the richest, tax credit cuts could have been avoided altogether. Low-income working households need decent pay and in-work benefits to make ends meet.” |
| Oxfam, the anti-poverty charity said the IFS findings were “deeply concerning”. | Oxfam, the anti-poverty charity said the IFS findings were “deeply concerning”. |
| The charity’s head of UK policy and campaigns Nick Bryer said: “The Government’s decision to raise wages for the lowest paid is a significant and welcome step. But, at a time when the Government is cutting taxes for the better-off, there can be no justification for giving to low-income families with one hand but taking more away with the other. | The charity’s head of UK policy and campaigns Nick Bryer said: “The Government’s decision to raise wages for the lowest paid is a significant and welcome step. But, at a time when the Government is cutting taxes for the better-off, there can be no justification for giving to low-income families with one hand but taking more away with the other. |
| Updated | |
| at 4.45pm BST | |
| 4.42pm BST | |
| 16:42 | |
| Back to budget reactions, the Prime Minister’s official spokeswoman has defended it and said it would “keep us on the path to stronger economic security”. | Back to budget reactions, the Prime Minister’s official spokeswoman has defended it and said it would “keep us on the path to stronger economic security”. |
| Asked about the IFS analysis (13:48pm) the spokeswoman said: “The Chancellor has been clear today that with the welfare savings, the tax cuts, the introduction of the national living wage, a typical family where someone is working full time on the minimum wage will be better off in 2020.” | Asked about the IFS analysis (13:48pm) the spokeswoman said: “The Chancellor has been clear today that with the welfare savings, the tax cuts, the introduction of the national living wage, a typical family where someone is working full time on the minimum wage will be better off in 2020.” |
| “The point I would make about the IFS is they themselves have said they cannot quantify how many will lose from the changes to tax credits but not gain from the national living wage as a result of the summer Budget.” | “The point I would make about the IFS is they themselves have said they cannot quantify how many will lose from the changes to tax credits but not gain from the national living wage as a result of the summer Budget.” |
| When questioned about whether the budget was regressive, the spokeswoman said: “The Prime Minister and the Chancellor have delivered a Budget that has a range of measures across society. It has delivered on a manifesto commitment on which they were elected, which was to freeze benefits.” | When questioned about whether the budget was regressive, the spokeswoman said: “The Prime Minister and the Chancellor have delivered a Budget that has a range of measures across society. It has delivered on a manifesto commitment on which they were elected, which was to freeze benefits.” |
| Number 10 also rejected the suggestion that a higher minimum wage would act as a draw for economic migrants from Europe. | Number 10 also rejected the suggestion that a higher minimum wage would act as a draw for economic migrants from Europe. |
| “I would not accept that. There are already differences within wage levels across the European Union. There are other countries which already pay higher wages.” | “I would not accept that. There are already differences within wage levels across the European Union. There are other countries which already pay higher wages.” |
| Updated | |
| at 4.44pm BST | |
| 4.24pm BST | |
| 16:24 | |
| While some correspondents are feeling unloved that they haven’t received a blah blah email: | While some correspondents are feeling unloved that they haven’t received a blah blah email: |
| Feeling left out that @hmtreasury hasn't sent me a Dear Blah, Blah, Blah email. Clearly blackballed from Blah blah blah clique. | Feeling left out that @hmtreasury hasn't sent me a Dear Blah, Blah, Blah email. Clearly blackballed from Blah blah blah clique. |
| Those lobby journalists who did, had their day made: | Those lobby journalists who did, had their day made: |
| Email just received from @hmtreasury : Dear, Blah, Blah Blah. Regards (X) Made. My. Day. | Email just received from @hmtreasury : Dear, Blah, Blah Blah. Regards (X) Made. My. Day. |
| Looks a lot like the Treasury press office has emailed the entire lobby to say "Blah, Blah Blah". I no longer feel special | Looks a lot like the Treasury press office has emailed the entire lobby to say "Blah, Blah Blah". I no longer feel special |
| The Treasury has just emailed this to journalists. pic.twitter.com/hNEtQBrVEF | The Treasury has just emailed this to journalists. pic.twitter.com/hNEtQBrVEF |
| Others pictured the panic at the treasury: | Others pictured the panic at the treasury: |
| blah blah UNSEND UNSEND regards @hmtreasury | blah blah UNSEND UNSEND regards @hmtreasury |
| Loving this new #blahblahblah campaign from HM Treasury that has already gone viral. Very good. Very strong. | Loving this new #blahblahblah campaign from HM Treasury that has already gone viral. Very good. Very strong. |
| Updated | |
| at 4.26pm BST | |
| 4.15pm BST | |
| 16:15 | |
| My colleague from the lobby has let me know that the nonsense treasury email had actually gone out to the whole lobby, and was actually a test run for summer drinks. | My colleague from the lobby has let me know that the nonsense treasury email had actually gone out to the whole lobby, and was actually a test run for summer drinks. |
| Looks like an invitation gone wrong. | Looks like an invitation gone wrong. |
| Here are a few reactions to that “Dear blah blah” letter to a journalist from the treasury that tickled us: | Here are a few reactions to that “Dear blah blah” letter to a journalist from the treasury that tickled us: |
| @JenWilliamsMEN @hmtreasury Haha. Very informative. | @JenWilliamsMEN @hmtreasury Haha. Very informative. |
| @JenWilliamsMEN @hmtreasury Best bit, funnier than 'blah, blah...' is 'Regards...Billy'. That really tickled me. | @JenWilliamsMEN @hmtreasury Best bit, funnier than 'blah, blah...' is 'Regards...Billy'. That really tickled me. |
| @JenWilliamsMEN @hmtreasury that is actually amazing! I can only dream of one day getting such an informative email | @JenWilliamsMEN @hmtreasury that is actually amazing! I can only dream of one day getting such an informative email |
| @Nicole_Kenny @hmtreasury at least it's honest. | @Nicole_Kenny @hmtreasury at least it's honest. |
| @JenWilliamsMEN @hmtreasury Budget-fatigue? | @JenWilliamsMEN @hmtreasury Budget-fatigue? |
| 3.53pm BST | |
| 15:53 | |
| In what is probably the political laugh of the day, Jennifer Williams – the political/social affairs editor for the Manchester Evening News – has shared with us in this sublime tweet: | In what is probably the political laugh of the day, Jennifer Williams – the political/social affairs editor for the Manchester Evening News – has shared with us in this sublime tweet: |
| This: | This: |
| If only all emails and press releases were as concise. | If only all emails and press releases were as concise. |
| Updated | |
| at 4.32pm BST | |
| 3.47pm BST | |
| 15:47 | |
| Away from the maiden speeches and quoting of Voltaire in the Commons, Jeremy Corbyn – a Labour leadership contender – is to propose setting up a Defence Diversification Agency. | Away from the maiden speeches and quoting of Voltaire in the Commons, Jeremy Corbyn – a Labour leadership contender – is to propose setting up a Defence Diversification Agency. |
| This is to help redeploy workers if the Trident nuclear weapons system is not renewed, according to Corbyn. | This is to help redeploy workers if the Trident nuclear weapons system is not renewed, according to Corbyn. |
| He is to tell a meeting on the Wirral tonight that renewing Trident would cost £100 bn, which was “totally unjustifiable”, adding especially as public services are being “devastated” by cuts. | He is to tell a meeting on the Wirral tonight that renewing Trident would cost £100 bn, which was “totally unjustifiable”, adding especially as public services are being “devastated” by cuts. |
| “We cannot justify spending 100 billion on weapons of mass destruction when the vital public services that serve our communities are having their budgets slashed”, Corbyn is to say. | “We cannot justify spending 100 billion on weapons of mass destruction when the vital public services that serve our communities are having their budgets slashed”, Corbyn is to say. |
| “But in not renewing Trident, we cannot throw the baby out with the bathwater and lose the tremendous skills of that workforce. That’s why we’re proposing a Defence Diversification Agency to redeploy that skill and innovation for the public good.” | “But in not renewing Trident, we cannot throw the baby out with the bathwater and lose the tremendous skills of that workforce. That’s why we’re proposing a Defence Diversification Agency to redeploy that skill and innovation for the public good.” |
| The agency would help diversify workers’ skills for the Government’s strategic investment priorities, Corbyn will say. | The agency would help diversify workers’ skills for the Government’s strategic investment priorities, Corbyn will say. |
| The move would help create jobs and apprenticeships and give a greater boost to the economy than Trident renewal, the Islington North MP believes. | The move would help create jobs and apprenticeships and give a greater boost to the economy than Trident renewal, the Islington North MP believes. |
| 3.35pm BST | |
| 15:35 | |
| Jess Phillips, the MP for Birmingham Yardley, has written how “I relied on benefits” in a blog on the Huffington Post. | Jess Phillips, the MP for Birmingham Yardley, has written how “I relied on benefits” in a blog on the Huffington Post. |
| Check me out, modern day front page news pic.twitter.com/beLE2OaOI0 | Check me out, modern day front page news pic.twitter.com/beLE2OaOI0 |
| In the post, Phillips argues tax credits are a hand-up not a handout. | In the post, Phillips argues tax credits are a hand-up not a handout. |
| She said: “There are two things that gall me about what Mr Osborne said in the budget. The first is the idea that benefits system should not support ‘lifestyles’ those in work cannot afford.” | She said: “There are two things that gall me about what Mr Osborne said in the budget. The first is the idea that benefits system should not support ‘lifestyles’ those in work cannot afford.” |
| Phillips argues this is because she was in fact working. On the critique of living a lifestyle on benefits she said: “like to see him [Osborne] live it up on these benefits.” | Phillips argues this is because she was in fact working. On the critique of living a lifestyle on benefits she said: “like to see him [Osborne] live it up on these benefits.” |
| Phillips adds: “The second thorn in the budget is the rebirth of the idea that people have extra babies to get benefits.” | Phillips adds: “The second thorn in the budget is the rebirth of the idea that people have extra babies to get benefits.” |
| Updated | |
| at 4.02pm BST | |
| 3.17pm BST | |
| 15:17 | |
| On to constitutional reform news: plans for English votes for English laws are to be revised after a Commons revolt. | On to constitutional reform news: plans for English votes for English laws are to be revised after a Commons revolt. |
| Tory whips have warned Downing Street it faced defeat because rebel Conservatives had joined forces with the Democratic Unionist party (DUP), Nicholas Watt, our political corespondent, reports. | Tory whips have warned Downing Street it faced defeat because rebel Conservatives had joined forces with the Democratic Unionist party (DUP), Nicholas Watt, our political corespondent, reports. |
| Alistair Carmichael, the former Lib Dem Scotland secretary, said that the government’s plans had descended into farce after a humiliating climbdown. | Alistair Carmichael, the former Lib Dem Scotland secretary, said that the government’s plans had descended into farce after a humiliating climbdown. |
| You can read the full account here: | You can read the full account here: |
| Related: English votes for English laws plan to be revised after Commons revolt | Related: English votes for English laws plan to be revised after Commons revolt |
| Updated | |
| at 4.01pm BST | |
| 3.11pm BST | |
| 15:11 | |
| Andy Burnham, the Labour leadership hopeful, has called the IFS verdict on the Budget “devastating” and condemned the celebrations of Iain Duncan Smith, the work and pensions secretary, in the Commons. | Andy Burnham, the Labour leadership hopeful, has called the IFS verdict on the Budget “devastating” and condemned the celebrations of Iain Duncan Smith, the work and pensions secretary, in the Commons. |
| Burnham said in a tweet it showed the “nasty party was well and truly back”. | Burnham said in a tweet it showed the “nasty party was well and truly back”. |
| Read the devastating @TheIFS verdict on the Budget. Then look at this picture again. Nasty Party is well & truly back pic.twitter.com/f0c7Ysfp6t | Read the devastating @TheIFS verdict on the Budget. Then look at this picture again. Nasty Party is well & truly back pic.twitter.com/f0c7Ysfp6t |
| The IFS said 13 million families will be worse off because of the freeze on working-age benefits (see 13:48pm). | The IFS said 13 million families will be worse off because of the freeze on working-age benefits (see 13:48pm). |
| Updated | |
| at 4.00pm BST | |
| 3.06pm BST | |
| 15:06 | |
| Earlier, John Cridland, the director general of the CBI – the independent employers’ organisation – also reacted to the “national living wage” and said it was a “gamble” that risked politicising the process and causing problems for some small businesses. | Earlier, John Cridland, the director general of the CBI – the independent employers’ organisation – also reacted to the “national living wage” and said it was a “gamble” that risked politicising the process and causing problems for some small businesses. |
| “The businesses that will be under the most pressure, paying a significantly higher minimum wage - 6% higher on average every year in this parliament - aren’t the same businesses as a whole who will get the benefit from the tax reductions,” he told Today this morning. | “The businesses that will be under the most pressure, paying a significantly higher minimum wage - 6% higher on average every year in this parliament - aren’t the same businesses as a whole who will get the benefit from the tax reductions,” he told Today this morning. |
| “Setting the minimum wage isn’t about morality. What we have done with the minimum wage is do the best we possibly can for low-paid workers while keeping them in a job by forensically setting a rate that small businesses could afford to pay. Now that is being prejudged by politicians to achieve a social objective.” | “Setting the minimum wage isn’t about morality. What we have done with the minimum wage is do the best we possibly can for low-paid workers while keeping them in a job by forensically setting a rate that small businesses could afford to pay. Now that is being prejudged by politicians to achieve a social objective.” |
| Menawhile, Chris Leslie, the new shadow chancellor, said Labour was “delighted” that Osborne had “stolen” some of its manifesto policies – such as the increase in the minimum wage. | Menawhile, Chris Leslie, the new shadow chancellor, said Labour was “delighted” that Osborne had “stolen” some of its manifesto policies – such as the increase in the minimum wage. |
| But he added (see 11:36am): “Do not underestimate how important those tax credits have been for many, many people who will be waking up this morning and I think left reeling by the massive reduction to their quality of life that will come because of the nature of this set of decisions. | But he added (see 11:36am): “Do not underestimate how important those tax credits have been for many, many people who will be waking up this morning and I think left reeling by the massive reduction to their quality of life that will come because of the nature of this set of decisions. |
| “It will really hit working families hard.” | “It will really hit working families hard.” |
| Updated | |
| at 4.00pm BST | |
| 2.54pm BST | |
| 14:54 | |
| In two separate charts, the IFS shows what the impact of tax and benefit reforms will be, between five and nine years: | In two separate charts, the IFS shows what the impact of tax and benefit reforms will be, between five and nine years: |
| Impact of tax and benefit reforms between Jan 2010 and April 2019 (incl. universal credit): http://t.co/Gd3KOr1mA2 pic.twitter.com/LkDwX4SGzX | Impact of tax and benefit reforms between Jan 2010 and April 2019 (incl. universal credit): http://t.co/Gd3KOr1mA2 pic.twitter.com/LkDwX4SGzX |
| Impact of tax and benefit reforms between April 2015 and April 2019 (incl. universal credit): http://t.co/Gd3KOr1mA2 pic.twitter.com/AYkv1ZUWxa | Impact of tax and benefit reforms between April 2015 and April 2019 (incl. universal credit): http://t.co/Gd3KOr1mA2 pic.twitter.com/AYkv1ZUWxa |
| 2.45pm BST | |
| 14:45 | |
| Ed Miliband, the former Labour leader, has responded to the IFS verdict (see 13:48pm). He tweeted: | Ed Miliband, the former Labour leader, has responded to the IFS verdict (see 13:48pm). He tweeted: |
| @TheIFS verdict is stark: rise in minimum wage doesn't compensate for cuts to tax credits & poorest hit far harder than richest by Budget. | @TheIFS verdict is stark: rise in minimum wage doesn't compensate for cuts to tax credits & poorest hit far harder than richest by Budget. |
| The shadow business secretary cited a key part of the IFS statement: | The shadow business secretary cited a key part of the IFS statement: |
| .@TheIFS:"simply not enough money going in to the new minimum wage to anywhere near compensate people on tax credits" http://t.co/68Dorj1pPA | .@TheIFS:"simply not enough money going in to the new minimum wage to anywhere near compensate people on tax credits" http://t.co/68Dorj1pPA |
| Iain Watson, the BBC political correspondent, has said: | Iain Watson, the BBC political correspondent, has said: |
| State will be much same size- as % of national income - than it was in late 90s says IFS but higher proportion spent on health, pensions | State will be much same size- as % of national income - than it was in late 90s says IFS but higher proportion spent on health, pensions |
| Jonathan Portes, the director of the National Institute of Economic and Social Research, linked to an extract from Paul Johnson’s IFS assessment, which ends: | Jonathan Portes, the director of the National Institute of Economic and Social Research, linked to an extract from Paul Johnson’s IFS assessment, which ends: |
| This was a big budget in some respects. It was a deeply disappointing budget for those of us who hoped the chancellor might take the chance to improve, simplify and reform our creaking tax system. This was not the budget of a tax reforming chancellor. | This was a big budget in some respects. It was a deeply disappointing budget for those of us who hoped the chancellor might take the chance to improve, simplify and reform our creaking tax system. This was not the budget of a tax reforming chancellor. |
| Yet Portes said he would be “slightly less” negative: | Yet Portes said he would be “slightly less” negative: |
| This is the most damning IFS assessment of any Budget I've ever seen: http://t.co/CzO1IrlzCT [for record, I'd be slightly less negative]. | This is the most damning IFS assessment of any Budget I've ever seen: http://t.co/CzO1IrlzCT [for record, I'd be slightly less negative]. |
| In fact, Portes concluded in a blog that it was a budget for “hard-working Poles.” | In fact, Portes concluded in a blog that it was a budget for “hard-working Poles.” |
| Updated | |
| at 3.57pm BST | |
| 2.31pm BST | |
| 14:31 | |
| IMF cuts world growth forecast | IMF cuts world growth forecast |
| The International Monetary Fund (IMF), an organisation of 188 countries, has said a slowdown in economic output in the UK and other advanced economies in this year’s first quarter will peg back global growth. | The International Monetary Fund (IMF), an organisation of 188 countries, has said a slowdown in economic output in the UK and other advanced economies in this year’s first quarter will peg back global growth. |
| In its latest World Economic Outlook, the IMF predicted world growth of 3.4% this year, down from its previous projection in April of 3.5%. | In its latest World Economic Outlook, the IMF predicted world growth of 3.4% this year, down from its previous projection in April of 3.5%. |
| The IMF had forecast UK growth this year would fall to 2.4%, from 2.7% in April, and next year it cuts its forecast to 2.2% from 2.3%. | The IMF had forecast UK growth this year would fall to 2.4%, from 2.7% in April, and next year it cuts its forecast to 2.2% from 2.3%. |
| The organisation has also dismissed fears that the Greek crisis will slow down the global economic recovery. | The organisation has also dismissed fears that the Greek crisis will slow down the global economic recovery. |
| Blanchard: Greece a reminder of the dangers of high debt. http://t.co/ORzIA4vT5O #WEO pic.twitter.com/kfifAzIHjf | Blanchard: Greece a reminder of the dangers of high debt. http://t.co/ORzIA4vT5O #WEO pic.twitter.com/kfifAzIHjf |
| The report has said that oil prices had rebounded more than expected, after falling by more than half since last summer due to the crisis in Ukraine and overproduction. | The report has said that oil prices had rebounded more than expected, after falling by more than half since last summer due to the crisis in Ukraine and overproduction. |
| It expected the average price of oil to be 59 US dollars per barrel over the year. | It expected the average price of oil to be 59 US dollars per barrel over the year. |
| Meanwhile, the latest forecast from the Office for Budget Responsibility (OBR) for UK growth has slightly revised down the expectation for 2015 to 2.4% from 2.5%, due to lower-than-expected growth in the first quarter of the year. | Meanwhile, the latest forecast from the Office for Budget Responsibility (OBR) for UK growth has slightly revised down the expectation for 2015 to 2.4% from 2.5%, due to lower-than-expected growth in the first quarter of the year. |
| You can read more about it here: | You can read more about it here: |
| Related: IMF cuts 2015 growth forecast for US, UK, Japan and Canada | Related: IMF cuts 2015 growth forecast for US, UK, Japan and Canada |
| Updated | |
| at 3.55pm BST | |
| 2.15pm BST | |
| 14:15 | |
| Aisha Gani | Aisha Gani |
| Hello, I’m Aisha Gani and I’ll be taking you through the rest of this afternoon’s proceedings in parliament. You can tweet me at @aishagani and feel free to leave comments below the line – I’ll include the best ones. | Hello, I’m Aisha Gani and I’ll be taking you through the rest of this afternoon’s proceedings in parliament. You can tweet me at @aishagani and feel free to leave comments below the line – I’ll include the best ones. |
| So far in the Commons there has mostly been debates on the sustainability of the NHS, mental health services in schools, and on the plight of refugees. | So far in the Commons there has mostly been debates on the sustainability of the NHS, mental health services in schools, and on the plight of refugees. |
| But back to budget responses. Perhaps the most intriguing query today was from Labour’s Helen Goodman, the shadow work and pensions secretary. | But back to budget responses. Perhaps the most intriguing query today was from Labour’s Helen Goodman, the shadow work and pensions secretary. |
| She suggested that the budget is unfair to Catholics because of plans to limit to two the number of children eligible for tax credits from April 2017. | She suggested that the budget is unfair to Catholics because of plans to limit to two the number of children eligible for tax credits from April 2017. |
| Goodman said: “Could you explain to the House why cutting tax credits for large families is a fair thing to do when it will be concentrated … on families where children are living in poverty, on Roman Catholic families, on Catholics from other minorities. | Goodman said: “Could you explain to the House why cutting tax credits for large families is a fair thing to do when it will be concentrated … on families where children are living in poverty, on Roman Catholic families, on Catholics from other minorities. |
| “Don’t you understand that every child matters?” | “Don’t you understand that every child matters?” |
| Ian Duncan Smith, the work and pensions secretary replied: “I have for some time believed the way tax credits operated distorted the system so there were far too many families not going into work, living in bigger and bigger houses, with larger families subsidised by the state when many others, the vast majority of families in Britain, make decisions about how many children they can have and the houses they can live in. | Ian Duncan Smith, the work and pensions secretary replied: “I have for some time believed the way tax credits operated distorted the system so there were far too many families not going into work, living in bigger and bigger houses, with larger families subsidised by the state when many others, the vast majority of families in Britain, make decisions about how many children they can have and the houses they can live in. |
| “Getting that balance back is about getting fairness back into the system.” | “Getting that balance back is about getting fairness back into the system.” |
| Updated | |
| at 3.53pm BST | |
| 2.08pm BST | |
| 14:08 | |
| Taking a short break from the IFS verdict, the Guardian’s Scotland correspondent Libby Brooks has written about a controversial line in the summer budget which suggests a woman who becomes pregnant with a third child after being raped would have to justify her position in order to get tax credits. She writes : | Taking a short break from the IFS verdict, the Guardian’s Scotland correspondent Libby Brooks has written about a controversial line in the summer budget which suggests a woman who becomes pregnant with a third child after being raped would have to justify her position in order to get tax credits. She writes : |
| The government has been challenged to justify an “incredibly distasteful” proposal in Wednesday’s budget which would require a woman who had a third child as the result of rape to justify her position in order to avoid losing tax credits. | The government has been challenged to justify an “incredibly distasteful” proposal in Wednesday’s budget which would require a woman who had a third child as the result of rape to justify her position in order to avoid losing tax credits. |
| The plans to restrict child tax credits to two children for new claimants from 2017 include a number of exemptions, including multiple births, and set out that “the Department for Work and Pensions and HMRC will develop protections for women who have a third child as a result of rape or other exceptional circumstances”. | The plans to restrict child tax credits to two children for new claimants from 2017 include a number of exemptions, including multiple births, and set out that “the Department for Work and Pensions and HMRC will develop protections for women who have a third child as a result of rape or other exceptional circumstances”. |
| Alison Thewliss, SNP MP for Glasgow Central, who first drew attention to the clause on Twitter on Wednesday afternoon, described what would inevitably result in a woman having to prove to a DWP official that she had been raped as appalling. | Alison Thewliss, SNP MP for Glasgow Central, who first drew attention to the clause on Twitter on Wednesday afternoon, described what would inevitably result in a woman having to prove to a DWP official that she had been raped as appalling. |
| I am utterly furious that Tories will make women who've had a child after being raped justify that for tax credits. pic.twitter.com/Ai4SKBOHaQ | I am utterly furious that Tories will make women who've had a child after being raped justify that for tax credits. pic.twitter.com/Ai4SKBOHaQ |
| Updated | |
| at 3.52pm BST | |
| 2.02pm BST | |
| 14:02 | |
| Here’s some initial Twitter reaction from the IFS’s verdict. | Here’s some initial Twitter reaction from the IFS’s verdict. |
| There seems genuine surprise in some quarters that a Conservative budget has taken much more from poorer households than richer ones | There seems genuine surprise in some quarters that a Conservative budget has taken much more from poorer households than richer ones |
| IFS says IHT changes increases the bias towards owner occupation and may push up house prices #budget2015 | IFS says IHT changes increases the bias towards owner occupation and may push up house prices #budget2015 |
| not much on this in the Budget... although OBR suggested 14000 less housing association homes.. perhaps more at SR: pic.twitter.com/U3ZY7nxcWM | not much on this in the Budget... although OBR suggested 14000 less housing association homes.. perhaps more at SR: pic.twitter.com/U3ZY7nxcWM |
| Seems Osborne has bucked one trend though: amount of tax raised in post-election budgets. Most hike tax by £5bn-this one raises even more | Seems Osborne has bucked one trend though: amount of tax raised in post-election budgets. Most hike tax by £5bn-this one raises even more |
| 1.48pm BST | |
| 13:48 | |
| Paul Johnson of the IFS has made his opening remarks. Here are the key quotes: | Paul Johnson of the IFS has made his opening remarks. Here are the key quotes: |
| Falling value of public pay relative to private sector - full presentation here: http://t.co/VTCNsapf24 #ifsbudget pic.twitter.com/qigwWa72JN | Falling value of public pay relative to private sector - full presentation here: http://t.co/VTCNsapf24 #ifsbudget pic.twitter.com/qigwWa72JN |
| Statutory corporate tax rates in the G20, 2015 - from this #ifsbudget briefing presentation: http://t.co/HAWHKEli0H pic.twitter.com/DAt3qeakX7 | Statutory corporate tax rates in the G20, 2015 - from this #ifsbudget briefing presentation: http://t.co/HAWHKEli0H pic.twitter.com/DAt3qeakX7 |
| Johnson concludes: | Johnson concludes: |
| Updated | |
| at 3.51pm BST | |
| 1.26pm BST | |
| 13:26 | |
| The IFS briefing has started now and you can watch it here. | The IFS briefing has started now and you can watch it here. |
| Extract from Paul Johnson's opening remarks at #ifsbudget briefing, underway now pic.twitter.com/CJgsHitvji | Extract from Paul Johnson's opening remarks at #ifsbudget briefing, underway now pic.twitter.com/CJgsHitvji |
| 1.22pm BST | |
| 13:22 | |
| People on tax credits will be "significantly worse off" because of the budget, says the IFS | People on tax credits will be "significantly worse off" because of the budget, says the IFS |
| Paul Johnson has been speaking on the BBC’s World at One. He said that, of the range of cuts included in yesterday’s budget plans, the freezing of most working-age benefits through to 2020 would have the biggest effect, saving £4bn over that period. 13m UK families will lose average of £260 a year due to budget’s freeze on working-age benefits. | Paul Johnson has been speaking on the BBC’s World at One. He said that, of the range of cuts included in yesterday’s budget plans, the freezing of most working-age benefits through to 2020 would have the biggest effect, saving £4bn over that period. 13m UK families will lose average of £260 a year due to budget’s freeze on working-age benefits. |
| The reduction of the work allowance will also have a huge effect, he said, meaning cuts will be bigger for those with a job, reducing incentives for people to move into work. | The reduction of the work allowance will also have a huge effect, he said, meaning cuts will be bigger for those with a job, reducing incentives for people to move into work. |
| The minimum wage announcement won’t “anywhere near compensate in cash terms” for the welfare cuts, he said. People currently on tax credits will be “significantly worse off” and the reform would cost 3 million families an average of £5,000 per year each. | The minimum wage announcement won’t “anywhere near compensate in cash terms” for the welfare cuts, he said. People currently on tax credits will be “significantly worse off” and the reform would cost 3 million families an average of £5,000 per year each. |
| The public sector pay-rise cap of 1% is more dramatic than it seems, says Paul Johnson. By 2020 public sector pay will be much lower compared to private sector pay than it has been for 30 years. | The public sector pay-rise cap of 1% is more dramatic than it seems, says Paul Johnson. By 2020 public sector pay will be much lower compared to private sector pay than it has been for 30 years. |
| Updated | |
| at 3.48pm BST | |
| 1.05pm BST | |
| 13:05 | |
| The Institute for Fiscal Studies is about to start its briefing on yesterday’s budget. But, in the meantime, the BBC’s World at One has interviewed the IFS’s director, Paul Johnson, and the verdict doesn’t look great. | The Institute for Fiscal Studies is about to start its briefing on yesterday’s budget. But, in the meantime, the BBC’s World at One has interviewed the IFS’s director, Paul Johnson, and the verdict doesn’t look great. |
| Paul Johnson (@TheIFS) tells #wato as a result of the #Budget poorer households will lose out "significantly" pic.twitter.com/7fzlHlYEYB | Paul Johnson (@TheIFS) tells #wato as a result of the #Budget poorer households will lose out "significantly" pic.twitter.com/7fzlHlYEYB |
| Updated | |
| at 3.47pm BST | |
| 12.56pm BST | |
| 12:56 | |
| Iain Duncan Smith is making his closing comments in the debate in parliament. | Iain Duncan Smith is making his closing comments in the debate in parliament. |
| I believe the next five years will see a renaissance in Britain as we change to an economic powerhouse, both in the north and in the south, with more people back to work earning a decent wage, in fact a living wage... | I believe the next five years will see a renaissance in Britain as we change to an economic powerhouse, both in the north and in the south, with more people back to work earning a decent wage, in fact a living wage... |
| Even with the changes we are making, the welfare system will remain generous. Around five in 10 families with children will still be eligible for tax credits as a result of these reforms. These figures show that we are taking a balanced approach to welfare, an approach that allows people to stand on their own two feet whenever possible, but provides them with the support to do that. To reduce their taxes, to provide childcare and skills support. Providing intensive back to work support, introducing universal credit to make work pay and asking employers to play their part by increasing wages at a time when our economy is growing. | Even with the changes we are making, the welfare system will remain generous. Around five in 10 families with children will still be eligible for tax credits as a result of these reforms. These figures show that we are taking a balanced approach to welfare, an approach that allows people to stand on their own two feet whenever possible, but provides them with the support to do that. To reduce their taxes, to provide childcare and skills support. Providing intensive back to work support, introducing universal credit to make work pay and asking employers to play their part by increasing wages at a time when our economy is growing. |
| In conclusion … it is an approach that continues to provide a generous safety net and support for those who need it. It expects people to take the same choices as those in work do and those not on benefits, and at its heart it is an approach that is about moving from a low wage, high tax, high welfare country to a high wage, low tax, lower welfare country. It’s a positive vision for Britain under a one-nation Conservative government, delivered by a great chancellor and a great prime minister. | In conclusion … it is an approach that continues to provide a generous safety net and support for those who need it. It expects people to take the same choices as those in work do and those not on benefits, and at its heart it is an approach that is about moving from a low wage, high tax, high welfare country to a high wage, low tax, lower welfare country. It’s a positive vision for Britain under a one-nation Conservative government, delivered by a great chancellor and a great prime minister. |
| Updated | |
| at 3.47pm BST | |
| 12.35pm BST | |
| 12:35 | |
| A Labour MP has suggested govt's benefit cuts will discriminate against Roman Catholics who have religious objections to contraception. | A Labour MP has suggested govt's benefit cuts will discriminate against Roman Catholics who have religious objections to contraception. |
| Helen Goodman said that catholics with large families would be unfairly hit by plans to restrict Child Tax Credits to the first 2 children | Helen Goodman said that catholics with large families would be unfairly hit by plans to restrict Child Tax Credits to the first 2 children |
| There has been a lot of Twitter comment about the two-child tax credit cap. Journalist Dawn Foster found the section of the red book that says protections will be developed for women in “exceptional circumstances”, including becoming pregnant as a result of rape. | There has been a lot of Twitter comment about the two-child tax credit cap. Journalist Dawn Foster found the section of the red book that says protections will be developed for women in “exceptional circumstances”, including becoming pregnant as a result of rape. |
| So Treasury genuinely discussed whether mothers of three should receive child benefit if they were raped #Budget2015 pic.twitter.com/MLQzpm3yps | So Treasury genuinely discussed whether mothers of three should receive child benefit if they were raped #Budget2015 pic.twitter.com/MLQzpm3yps |
| Updated | |
| at 3.45pm BST | |
| 12.25pm BST | |
| 12:25 | |
| Iain Duncan Smith opens his responses to Leslie by saying – with Osborne grinning in the background – that the chancellor would be looked back on as “one of the greatest”. | Iain Duncan Smith opens his responses to Leslie by saying – with Osborne grinning in the background – that the chancellor would be looked back on as “one of the greatest”. |
| IDS criticises the tax credit system, which he says was the brainchild of Gordon Brown. 40% of those being given tax credits have tax taken off them, which is then recycled through the system before being given back to them. | IDS criticises the tax credit system, which he says was the brainchild of Gordon Brown. 40% of those being given tax credits have tax taken off them, which is then recycled through the system before being given back to them. |
| Tax credits cost the government £1.1bn in the first year it was introduced. It is now costing £30bn per year, most of which is on child tax credits. It was “money pumped into the system to chase, what was then, a moving poverty line,” says IDS. He also accuses the last Labour government of raising tax credit spending in the runup to general elections. | Tax credits cost the government £1.1bn in the first year it was introduced. It is now costing £30bn per year, most of which is on child tax credits. It was “money pumped into the system to chase, what was then, a moving poverty line,” says IDS. He also accuses the last Labour government of raising tax credit spending in the runup to general elections. |
| Updated | |
| at 3.45pm BST | |
| 12.13pm BST | |
| 12:13 | |
| Shailesh Vara, MP for North-West Cambridgeshire, has been appointed parliamentary under-secretary of state at Department for Work and Pensions. | Shailesh Vara, MP for North-West Cambridgeshire, has been appointed parliamentary under-secretary of state at Department for Work and Pensions. |
| Updated | |
| at 3.44pm BST | |
| 12.07pm BST | |
| 12:07 | |
| Yvette Cooper opposes 1% public sector pay cap | Yvette Cooper opposes 1% public sector pay cap |
| Yvette Cooper, one of Labour’s four leadership candidates, has announced that she opposes the government’s planned five-year 1% cap on public sector pay. | Yvette Cooper, one of Labour’s four leadership candidates, has announced that she opposes the government’s planned five-year 1% cap on public sector pay. |
| In a statement, Yvette Cooper has said: | In a statement, Yvette Cooper has said: |
| This is an ideological assault on public services from George Osborne, not a sensible policy, and it isn’t fair. Is the chancellor really saying he can afford to cut inheritance tax for estates worth £1m but the people who care for us and keep us safe should have to face five more years of real-term pay cuts? And it is an utter disgrace that the prime minister is still considering letting an unacceptable 10% pay increase for MPs go ahead, while forcing public sector workers to fall further behind. | This is an ideological assault on public services from George Osborne, not a sensible policy, and it isn’t fair. Is the chancellor really saying he can afford to cut inheritance tax for estates worth £1m but the people who care for us and keep us safe should have to face five more years of real-term pay cuts? And it is an utter disgrace that the prime minister is still considering letting an unacceptable 10% pay increase for MPs go ahead, while forcing public sector workers to fall further behind. |
| We need a responsible approach to pay that helps our public services cope with tighter budgets - supporting jobs and maintaining the quality of service. And that also means respecting the people who work so hard to care for us when we are sick or old, to teach our children, to keep our streets clean, to keep us safe from terror threats or to risk their lives defending our country. | We need a responsible approach to pay that helps our public services cope with tighter budgets - supporting jobs and maintaining the quality of service. And that also means respecting the people who work so hard to care for us when we are sick or old, to teach our children, to keep our streets clean, to keep us safe from terror threats or to risk their lives defending our country. |
| I will not support this five-year 1% cap, and I believe Labour must have the confidence to stand up for what is right for our public services and fair for hard working people. The government needs to change track before our vital services pay the price. | I will not support this five-year 1% cap, and I believe Labour must have the confidence to stand up for what is right for our public services and fair for hard working people. The government needs to change track before our vital services pay the price. |
| At a lobby briefing yesterday, Chris Leslie – who is currently attacking the chancellor’s budget in parliament – suggested it was not something he would oppose. | At a lobby briefing yesterday, Chris Leslie – who is currently attacking the chancellor’s budget in parliament – suggested it was not something he would oppose. |
| It is very difficult. I think we’ve got to weigh up some of these changes and be more thoughtful in the way that we don’t just literally oppose everything, as Harriet was saying, tempting though it might be to oppose everything. We don’t want to see public sector jobs being lost in the way that would happen if you found departments choosing to raise pay but making people redundant. And that is a very difficult and somewhat invidious choice for those departments. Ultimately, I think a level of restraint is probably necessary.” | It is very difficult. I think we’ve got to weigh up some of these changes and be more thoughtful in the way that we don’t just literally oppose everything, as Harriet was saying, tempting though it might be to oppose everything. We don’t want to see public sector jobs being lost in the way that would happen if you found departments choosing to raise pay but making people redundant. And that is a very difficult and somewhat invidious choice for those departments. Ultimately, I think a level of restraint is probably necessary.” |
| Updated | |
| at 3.43pm BST | |
| 11.59am BST | |
| 11:59 | |
| Iain Duncan Smith, the work and pensions secretary, has intervened to dispute Leslie’s anecdote, which he has repeated a lot today, about the effects of yesterday’s budget on a two-parent family on an average salary. Leslie says they will be £2,000 poorer. IDS says they will be better off as a result of yesterday’s budget. | Iain Duncan Smith, the work and pensions secretary, has intervened to dispute Leslie’s anecdote, which he has repeated a lot today, about the effects of yesterday’s budget on a two-parent family on an average salary. Leslie says they will be £2,000 poorer. IDS says they will be better off as a result of yesterday’s budget. |
| Updated | |
| at 3.42pm BST | |
| 11.55am BST | |
| 11:55 | |
| We learned more about Tory plans to cut welfare in one hour of the chancellor’s budget speech yesterday than we did in a whole general election campaign, says Leslie. The Conservatives did win a majority, but they concealed their plans from the electorate. | We learned more about Tory plans to cut welfare in one hour of the chancellor’s budget speech yesterday than we did in a whole general election campaign, says Leslie. The Conservatives did win a majority, but they concealed their plans from the electorate. |
| The Conservative manifesto said there would be a two-year freeze in working-age benefits, but yesterday the chancellor doubled that, he says. It was “one of the fastest broken promises in political history”. | The Conservative manifesto said there would be a two-year freeze in working-age benefits, but yesterday the chancellor doubled that, he says. It was “one of the fastest broken promises in political history”. |
| Updated | |
| at 3.41pm BST | |
| 11.45am BST | |
| 11:45 | |
| “The powerhouse has become a power cut”, says Leslie of the chancellor’s northern powerhouse plans. | “The powerhouse has become a power cut”, says Leslie of the chancellor’s northern powerhouse plans. |
| Alex Salmond reminds Leslie that in the runup to the Scottish referendum the former SNP leader described Darling as a “Tory frontman”. Does the shadow chancellor think that this is a fitting description in light of Darling’s comments this morning? Leslie repeats that he hasn’t read Darling’s remarks, so can’t comment. | Alex Salmond reminds Leslie that in the runup to the Scottish referendum the former SNP leader described Darling as a “Tory frontman”. Does the shadow chancellor think that this is a fitting description in light of Darling’s comments this morning? Leslie repeats that he hasn’t read Darling’s remarks, so can’t comment. |
| Updated | |
| at 3.41pm BST | |