This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/8226032.stm
The article has changed 8 times. There is an RSS feed of changes available.
| Version 5 | Version 6 |
|---|---|
| PM faces benefit plan rebellion | PM faces benefit plan rebellion |
| (about 2 hours later) | |
| The government faces a backbench rebellion over plans that could reduce housing benefit by up to £15 a week. | The government faces a backbench rebellion over plans that could reduce housing benefit by up to £15 a week. |
| Ministers are considering ending a policy which allows people who rent homes for less than their maximum benefit to keep the difference. | Ministers are considering ending a policy which allows people who rent homes for less than their maximum benefit to keep the difference. |
| About 300,000 people gained from the measure introduced last year. Ministers say scrapping it will save £150m. | About 300,000 people gained from the measure introduced last year. Ministers say scrapping it will save £150m. |
| Labour MP Frank Field said that was "crazy" and said he would table a Commons motion to block it. | Labour MP Frank Field said that was "crazy" and said he would table a Commons motion to block it. |
| Fellow Labour MP Gisela Stuart urged ministers to reconsider the move, describing it as "very bad politics". | |
| Key reform | Key reform |
| Since last year, housing benefit claimants have been entitled to a cash payback of up to £15 a week if they find accommodation at a lower rent than the level of housing allowance set by their local authority. | Since last year, housing benefit claimants have been entitled to a cash payback of up to £15 a week if they find accommodation at a lower rent than the level of housing allowance set by their local authority. |
| The change, a key part of the government's reform of housing benefit, was meant to encourage people on low incomes to shop around for the best deal when looking for rented accommodation. | The change, a key part of the government's reform of housing benefit, was meant to encourage people on low incomes to shop around for the best deal when looking for rented accommodation. |
| Of the 600,000 people who claim the housing allowance, about half are thought to have retained the surplus money - amounting to up to £780 a year in some cases. | Of the 600,000 people who claim the housing allowance, about half are thought to have retained the surplus money - amounting to up to £780 a year in some cases. |
| A proposal to end the measure, included in the Budget, is now under consultation. If approved it would come into force next April, just ahead of an expected general election. | A proposal to end the measure, included in the Budget, is now under consultation. If approved it would come into force next April, just ahead of an expected general election. |
| This small change will not affect our customers' ability to pay their rent and further support is available Department for Work and Pensions spokesman | This small change will not affect our customers' ability to pay their rent and further support is available Department for Work and Pensions spokesman |
| Mr Field, a former welfare minister who led the Labour rebellion against the abolition of the 10p tax rate, said the timing "could have been decided in Conservative headquarters". | Mr Field, a former welfare minister who led the Labour rebellion against the abolition of the 10p tax rate, said the timing "could have been decided in Conservative headquarters". |
| The measure was both "unfair" and "short-sighted", he told the BBC. | The measure was both "unfair" and "short-sighted", he told the BBC. |
| He said the savings achieved would be "miniscule" in terms of what the government needed to achieve to address its budget deficit as landlords would simply put up the rent or claimants would stop looking for cheaper deals. | He said the savings achieved would be "miniscule" in terms of what the government needed to achieve to address its budget deficit as landlords would simply put up the rent or claimants would stop looking for cheaper deals. |
| Mr Field plans to put down a motion when Parliament returns in October opposing the measure and expected to get support from other Labour MPs and opposition parties. | Mr Field plans to put down a motion when Parliament returns in October opposing the measure and expected to get support from other Labour MPs and opposition parties. |
| "I think there will be a natural revolt on Labour benches if the government tries to push this reform through," he told the BBC. | "I think there will be a natural revolt on Labour benches if the government tries to push this reform through," he told the BBC. |
| "We are not going to get through this mega-debt crisis which has engulfed the country by these sort of very small cuts in public expenditure which are clearly immensely important for people at the bottom who have least. | "We are not going to get through this mega-debt crisis which has engulfed the country by these sort of very small cuts in public expenditure which are clearly immensely important for people at the bottom who have least. |
| "We need to keep our eye on the big game. I don't think any Labour backbenchers are going to be in the mood to allow the first of these cuts to fall on people who are at the bottom of the pile." | "We need to keep our eye on the big game. I don't think any Labour backbenchers are going to be in the mood to allow the first of these cuts to fall on people who are at the bottom of the pile." |
| 'Cynical' | 'Cynical' |
| The Liberal Democrats, who first drew attention to the proposal, said it could reduce some families' weekly income by 20%, money they had come to rely upon. | The Liberal Democrats, who first drew attention to the proposal, said it could reduce some families' weekly income by 20%, money they had come to rely upon. |
| "I feel very angry about this," said housing spokesman Sarah Teather. | "I feel very angry about this," said housing spokesman Sarah Teather. |
| "When I think about the impact on my constituents, £15 will be a huge amount of their income. It seems to be a very cynical move." | "When I think about the impact on my constituents, £15 will be a huge amount of their income. It seems to be a very cynical move." |
| Housing charity Crisis also said the proposal was "ill-considered and potentially counterproductive". | Housing charity Crisis also said the proposal was "ill-considered and potentially counterproductive". |
| And the Institute of Fiscal Studies (IFS) said the savings from the move would be "a drop in the ocean" in terms of what was needed to rebalance the public finances. | |
| "Maybe the government thinks it needs all the drops in the ocean right now," IFS economist Stuart Adam told the BBC. | |
| The government said the proposed change would not prevent people most in need from being able to find decent accommodation. | The government said the proposed change would not prevent people most in need from being able to find decent accommodation. |
| "This small change will not affect our customers' ability to pay their rent and further support is available to those on a low income to help with other expenses," a spokesman for the Department of Work and Pensions said. | "This small change will not affect our customers' ability to pay their rent and further support is available to those on a low income to help with other expenses," a spokesman for the Department of Work and Pensions said. |