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Labour 'would keep child benefit cuts' made by coalition Labour 'confused and weak' over child benefit cuts says Cameron
(about 3 hours later)
A future Labour government would not reverse cuts to child benefit made by the coalition, the BBC has learned. David Cameron has accused Ed Miliband of "complete weakness" over welfare after it emerged Labour would not reverse cuts to child benefit.
Labour has criticised the cuts, but its leadership believes it could not afford the £2.3bn needed to reverse them. Labour criticised the decision to axe benefits for higher rate taxpayers but its leadership now believes it could not afford the £2.3bn to reverse them.
On Thursday, party leader Ed Miliband is due to say he supports capping the amount the next government will spend on welfare benefits. The prime minister said Mr Miliband had condemned the plans "in the strongest terms" when they were outlined in 2010.
Earlier this week the party announced it would cut winter fuel payments for wealthier pensioners. Labour says the state of the economy means spending must be controlled.
When the government decided to cut child benefits for higher rate taxpayers - which was later changed to those earning at least £50,000 - Labour attacked the move as unfair and said it proved the government was out of touch with hard-working families.
Economic credibilityEconomic credibility
When the government decided to cut child benefits from higher taxpayers, Labour attacked the move as unfair and said it proved the government was out of touch with hard-working families. But BBC political editor Nick Robinson says Labour's leadership has now concluded it would not be able to reverse the cuts, as the money needed would be 23 times the amount that would be saved by removing the winter fuel allowance from better off pensioners - the policy unveiled by Shadow Chancellor Ed Balls earlier this week.
BBC political editor Nick Robinson says he understands Labour's leadership has concluded it would not be able to reverse the cuts as the money needed would be 23 times the amount that would be saved by removing the winter fuel allowance from better off pensioners - the policy unveiled by Shadow Chancellor Ed Balls.
Nick Robinson says some critics are likely to see this as more evidence that Labour has abandoned its support for so-called universal benefits - those paid to all regardless of their income.Nick Robinson says some critics are likely to see this as more evidence that Labour has abandoned its support for so-called universal benefits - those paid to all regardless of their income.
On Thursday, Mr Miliband will also declare his support in principle for an idea first suggested by Chancellor George Osborne - a cap on that part of the benefits bill which is not triggered simply by a rise in unemployment. At Prime Minister's Questions in the Commons, Mr Cameron repeatedly challenged his opposite number to set out his party's position on child benefit and say whether his party now backed the coalition's changes.
It is being seen as a further sign that Labour is trying to restore its economic credibility by proving it has the will to curb spending. Mr Cameron said that in Mr Miliband's first Commons appearance as opposition leader in 2010, he had "totally condemned and attacked in the strongest possible terms what now turns out to be Labour Party policy".
There was "total and utter confusion" about Labour's position on child benefit, Mr Cameron said, adding that "on the economy, there are weak, divided and they are the same old Labour".
Mr Miliband chose not to respond to Mr Cameron's point, instead focusing on what he said was the crisis in accident and emergency departments in the NHS, saying the prime minister was "complacent and out of touch".
The decision not to reverse the restrictions on child benefit is being seen as a further sign that Labour is trying to restore its economic credibility by proving it has the will to curb spending.
Speaking on the BBC's Daily Politics, shadow Scottish secretary Margaret Curran said Labour would "prefer universal benefits to be universal" but, if elected in 2015, it would not be able to change everything the coalition government had done and would have to decide what its priorities were.
A Labour source said Mr Balls had made clear the party must "start planning for a tough inheritance because of this government's economic failure".A Labour source said Mr Balls had made clear the party must "start planning for a tough inheritance because of this government's economic failure".
"He also made clear we cannot write our first Budget today - two years ahead of a general election." In a speech on Thursday, Mr Miliband will also declare his support in principle for an idea first suggested by Chancellor George Osborne - a cap on that part of the benefits bill which is not triggered simply by a rise in unemployment.
Spending powerSpending power
Labour's plans to cut winter fuel payments for the UK's richer older people would affect about 600,000 people over 61 who pay higher and top income tax rates - saving about £100m. The UK Independence Party said there was a case for reversing the government's restrictions on child benefit, describing them as "illogical, ill thought out and grossly unfair".
Labour may also curb new free schools and police commissioners to save money. "We are contemplating reinstating it because it is a universal benefit to support families and children," Carol Lovatt, the party's children and families adviser said, adding a decision would be made at a meeting of its National Executive Committee in July.
Mr Balls said it would be "completely irresponsible" for Labour to pledge higher spending in 2015-6, after the next election, given the likely "bleak" state of the finances.
Conservative MP Robert Halfon responded to Labour's announcements by tweeting: "Tories should send thank you emails to Balls & Miliband for conceding welfare debate to Conservatives. Ending universalism & handouts to rich."
He added: "Now Labour are going to slash pensioner & child benefits, not so easy for them to scare pensioners & parents as to Tory plans."
Meanwhile, a study by the Institute for Fiscal Studies has suggested that the average middle-income family in Britain is likely to be nearly £1,800 a year worse-off by 2015.Meanwhile, a study by the Institute for Fiscal Studies has suggested that the average middle-income family in Britain is likely to be nearly £1,800 a year worse-off by 2015.
Families with two children will see a fall of £34 in their weekly incomes, after adjusting for inflation. A childless couple are likely to lose £1,248 a year, or £24 a week, it said on Tuesday.Families with two children will see a fall of £34 in their weekly incomes, after adjusting for inflation. A childless couple are likely to lose £1,248 a year, or £24 a week, it said on Tuesday.
The IFS also said that over the next three years, less well-off families would be hit harder than those with higher incomes. The IFS also said that over the next three years, less well-off families would be hit harder than those with higher incomes. The cuts in spending power were down to incomes failing to keep pace with inflation and changes to the benefits system, it added.
The cuts in spending power were down to incomes failing to keep pace with inflation and changes to the benefits system, it added.