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Election 2015: Benefit cap 'encouraging work' says PM Election 2015: Benefit cap 'encouraging work' says PM
(about 2 hours later)
David Cameron has defended Conservative plans to reduce the annual benefits cap from £26,000 to £23,000 if they remain in power after the election.David Cameron has defended Conservative plans to reduce the annual benefits cap from £26,000 to £23,000 if they remain in power after the election.
He said he was responding to public concerns the cap, which sets a maximum limit for state support for individual households, was set at too low a level.He said he was responding to public concerns the cap, which sets a maximum limit for state support for individual households, was set at too low a level.
The cap, he said, had encouraged people to look for work and he rejected calls for child benefit to be exempted.The cap, he said, had encouraged people to look for work and he rejected calls for child benefit to be exempted.
Critics have said a lower cap could increase levels of child poverty.Critics have said a lower cap could increase levels of child poverty.
Labour has said it backs the principle of a cap, which was introduced in England, Scotland and Wales in 2013, but will ask an independent commission to look at whether it should be lower in some areas.Labour has said it backs the principle of a cap, which was introduced in England, Scotland and Wales in 2013, but will ask an independent commission to look at whether it should be lower in some areas.
In a series of media interviews marking 100 days until the general election on 7 May, the Conservative leader also dropped what is likely to be seen as a hint that his party will continue to protect pensioner benefits like the winter fuel payment and free bus passes.In a series of media interviews marking 100 days until the general election on 7 May, the Conservative leader also dropped what is likely to be seen as a hint that his party will continue to protect pensioner benefits like the winter fuel payment and free bus passes.
The welfare cap limits the total benefits that households can receive to £500 per week.The welfare cap limits the total benefits that households can receive to £500 per week.
The coalition government set the level at £26,000 in April 2013, arguing that this meant households claiming benefits should be no better off than the average family in work.The coalition government set the level at £26,000 in April 2013, arguing that this meant households claiming benefits should be no better off than the average family in work.
The Institute for Fiscal Studies has said about 27,000 families have been subject to the cap so far, with their total benefits reduced by about £100m.The Institute for Fiscal Studies has said about 27,000 families have been subject to the cap so far, with their total benefits reduced by about £100m.
The benefits capThe benefits cap
How the cap worksHow the cap works
Mr Cameron announced in September that the cap would be lowered to £23,000 if the Conservatives formed the next government and the savings made would be used to fund three million new apprenticeships.Mr Cameron announced in September that the cap would be lowered to £23,000 if the Conservatives formed the next government and the savings made would be used to fund three million new apprenticeships.
Highlighting the policy in an interview with Radio 4's Today programme, he said it was having the desired effect and that about 40% of households which were no longer subject to the cap had found work.Highlighting the policy in an interview with Radio 4's Today programme, he said it was having the desired effect and that about 40% of households which were no longer subject to the cap had found work.
"The evidence is that the cap set at £26,000 has worked. Many thousands of households that were subject to that cap have gone out and found work."The evidence is that the cap set at £26,000 has worked. Many thousands of households that were subject to that cap have gone out and found work.
"It shows that many who have been subject to the cap have been more successful in finding work than those who have not.""It shows that many who have been subject to the cap have been more successful in finding work than those who have not."
'Issue of fairness''Issue of fairness'
Limiting the amount of state support a household could receive was a "basic issue of fairness", Mr Cameron said, recalling his words about the responsibilities of the state when he entered Downing Street for the first time as PM in May 2010.Limiting the amount of state support a household could receive was a "basic issue of fairness", Mr Cameron said, recalling his words about the responsibilities of the state when he entered Downing Street for the first time as PM in May 2010.
"I don't think a family should be able to get more in benefits than someone going out to work, working every say and trying to do the right thing for them and their family."I don't think a family should be able to get more in benefits than someone going out to work, working every say and trying to do the right thing for them and their family.
"As I said on the steps of Downing Street four and three quarter years ago, those who can should and those who can't we always help.""As I said on the steps of Downing Street four and three quarter years ago, those who can should and those who can't we always help."
While it was right to exempt disability benefits from the cap, the same protection should not be extended to child benefit, he said.While it was right to exempt disability benefits from the cap, the same protection should not be extended to child benefit, he said.
The Church of England has been critical of including child benefit in the cap and its bishops in the House of Lords joined forces with Labour and Liberal Democrat rebels to try and block the move in 2012.The Church of England has been critical of including child benefit in the cap and its bishops in the House of Lords joined forces with Labour and Liberal Democrat rebels to try and block the move in 2012.
The Child Poverty Action Group said lowering the cap "would pile on the misery for working and non-working families already struggling to pay for absolute basics".
Pensioner benefitsPensioner benefits
Asked whether a lower cap would increase the hardship of families with multiple children where no individuals worked, Mr Cameron said "not if they go out and get a job".Asked whether a lower cap would increase the hardship of families with multiple children where no individuals worked, Mr Cameron said "not if they go out and get a job".
He added: "This country is generating jobs at a record rate and there is a record number of vacancies today...The way to escape the welfare cap is to get the help and training that is there in order to get a job."He added: "This country is generating jobs at a record rate and there is a record number of vacancies today...The way to escape the welfare cap is to get the help and training that is there in order to get a job."
Mr Cameron has also indicated pensioners could continue to be protected as part of Conservative plans to find a further £12bn in welfare savings in the next Parliament.Mr Cameron has also indicated pensioners could continue to be protected as part of Conservative plans to find a further £12bn in welfare savings in the next Parliament.
At the last election the Conservative manifesto promised that along with free TV licences and the pension credit they get would go untouched.At the last election the Conservative manifesto promised that along with free TV licences and the pension credit they get would go untouched.
Mr Cameron told Today: "I've always said there aren't huge savings to be made from axing these benefits and pensioners welcome the clarity that's there's been."Mr Cameron told Today: "I've always said there aren't huge savings to be made from axing these benefits and pensioners welcome the clarity that's there's been."
Labour said the government had failed in its stated ambition of curbing the welfare bill. Labour said it would take away the winter fuel allowance from the wealthiest pensioners, those with incomes of more than £42,000 a year.
"David Cameron can't hide from the fact that his government has spent £25bn more than planned on welfare because of his failure to tackle the low pay that leaves millions dependent on benefits to make ends meet," said shadow work and pension secretary Rachel Reeves. "It is a tough choice that we are making that the Conservatives are not making," shadow chancellor Ed Balls told the BBC News Channel.