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Welfare Bill: Changes to continue despite Lords defeats Welfare Bill: Changes to continue despite Lords defeats
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The government has insisted it will continue with changes to the welfare system despite defeats in the Lords.The government has insisted it will continue with changes to the welfare system despite defeats in the Lords.
Labour peers and independent crossbenchers rejected proposals to means test the benefits of young disabled people and cancer patients.Labour peers and independent crossbenchers rejected proposals to means test the benefits of young disabled people and cancer patients.
Employment minister Chris Grayling said the welfare state should be focussed on supporting those with the most need. Employment minister Chris Grayling said the welfare state should be focused on supporting those with the most need.
Labour said the coalition was defeated for trying to "cross the basic line of British decency".Labour said the coalition was defeated for trying to "cross the basic line of British decency".
Mr Grayling said the government would "look carefully" at what peers had said, but ministers would seek to reverse the amendments in the Lords when they came back into the Commons.Mr Grayling said the government would "look carefully" at what peers had said, but ministers would seek to reverse the amendments in the Lords when they came back into the Commons.
He said those with genuine need would continue to receive support from the welfare state, but the government "can't provide everything to everyone", particularly in difficult financial times.He said those with genuine need would continue to receive support from the welfare state, but the government "can't provide everything to everyone", particularly in difficult financial times.
"What we can't do is provide support for people who have other financial means," he said."What we can't do is provide support for people who have other financial means," he said.
On Wednesday, peers voted by 260 to 216 to protect up to 15,000 young disabled people from cuts to employment support allowance (ESA), which has replaced incapacity benefit.On Wednesday, peers voted by 260 to 216 to protect up to 15,000 young disabled people from cuts to employment support allowance (ESA), which has replaced incapacity benefit.
They voted 234 to 186 for a two-year limit on claims, rather than the proposed one year, and by 222 to 166 to exempt cancer sufferers from a limit.They voted 234 to 186 for a two-year limit on claims, rather than the proposed one year, and by 222 to 166 to exempt cancer sufferers from a limit.
Critics said the plan meant disabled children who could never work would never be entitled to the benefit.Critics said the plan meant disabled children who could never work would never be entitled to the benefit.
As part of their drive to cut spending on welfare, the government wants to remove the so-called "youth provision" that allows some young people to receive contributory employment and support allowance (ESA) even though - due to disability or illness - they have not been able to work and build up National Insurance.As part of their drive to cut spending on welfare, the government wants to remove the so-called "youth provision" that allows some young people to receive contributory employment and support allowance (ESA) even though - due to disability or illness - they have not been able to work and build up National Insurance.
Welfare Minister Lord Freud said it was unfair for a young person to continue to get a contributory benefit without having "paid in" - even if they were to inherit a lot of money.Welfare Minister Lord Freud said it was unfair for a young person to continue to get a contributory benefit without having "paid in" - even if they were to inherit a lot of money.
Evidence of tension between the coalition parties has emerged in the wake of the government's defeats in the House of Lords.Evidence of tension between the coalition parties has emerged in the wake of the government's defeats in the House of Lords.
The government lost three votes over its welfare reforms after Labour and independent crossbench peers united to oppose the plans to cut employment support allowance.The government lost three votes over its welfare reforms after Labour and independent crossbench peers united to oppose the plans to cut employment support allowance.
But they were helped by a substantial number of Liberal Democrat peers who either rebelled or abstained.But they were helped by a substantial number of Liberal Democrat peers who either rebelled or abstained.
For example, in the last vote - on plans to exempt cancer sufferers from cuts to the ESA - more than half of all Lib Dem peers failed to support the government.For example, in the last vote - on plans to exempt cancer sufferers from cuts to the ESA - more than half of all Lib Dem peers failed to support the government.
In all, five Lib Dem peers rebelled and voted against their government and a further 44 abstained. In all, five Lib Dem peers rebelled and voted against their government. A further 44 did not vote.
In contrast, just 42 Lib Dem peers voted for the government.In contrast, just 42 Lib Dem peers voted for the government.
This suggests that while the Lib Dem leadership may be signed up to the coalition's spending cuts, many of their peers are less keen to wield the axe.This suggests that while the Lib Dem leadership may be signed up to the coalition's spending cuts, many of their peers are less keen to wield the axe.
He estimated that 90% of those affected by the change would still get the income-related part of ESA.He estimated that 90% of those affected by the change would still get the income-related part of ESA.
The effect of increasing the time limit from one to two years would be £1.6bn over five years, he said.The effect of increasing the time limit from one to two years would be £1.6bn over five years, he said.
He said the proposal to time-limit contributory ESA only applied to people in the "work-related activity group" and not those in the "support group" who were deemed incapable of work.He said the proposal to time-limit contributory ESA only applied to people in the "work-related activity group" and not those in the "support group" who were deemed incapable of work.
"We will always provide a safety net for those with limited income and people will still be able to claim income-related ESA.""We will always provide a safety net for those with limited income and people will still be able to claim income-related ESA."
He said that other benefits such as housing benefit and council tax benefit would be available.He said that other benefits such as housing benefit and council tax benefit would be available.
In the second defeat on Wednesday evening, peers agreed a move to replace the one-year cap with the ability for the government to legislate for a limit of not less than two years.In the second defeat on Wednesday evening, peers agreed a move to replace the one-year cap with the ability for the government to legislate for a limit of not less than two years.
"I am sympathetic to cutting the deficit, but I am highly sympathetic to sick and vulnerable people not being subjected to something that will make their lives even more miserable," said the crossbencher and doctor Lord Patel, who introduced the amendment."I am sympathetic to cutting the deficit, but I am highly sympathetic to sick and vulnerable people not being subjected to something that will make their lives even more miserable," said the crossbencher and doctor Lord Patel, who introduced the amendment.
His second amendment removed the time limit on contributory ESA payments for people receiving treatment for cancer.His second amendment removed the time limit on contributory ESA payments for people receiving treatment for cancer.
The defeats mean the measures will be removed for the time being from the government's Welfare Reform Bill, pending a decision by ministers on how to respond.The defeats mean the measures will be removed for the time being from the government's Welfare Reform Bill, pending a decision by ministers on how to respond.
The BBC's deputy political editor James Landale said that if the proposals were dropped entirely, the government would lose an estimated £2bn in savings.The BBC's deputy political editor James Landale said that if the proposals were dropped entirely, the government would lose an estimated £2bn in savings.
The government also suffered a defeat last month over elements of its plans to overhaul housing benefit.The government also suffered a defeat last month over elements of its plans to overhaul housing benefit.
Shadow work and pensions secretary Liam Byrne said the coalition had been defeated for trying to "cross the basic line of British decency".Shadow work and pensions secretary Liam Byrne said the coalition had been defeated for trying to "cross the basic line of British decency".
He urged ministers not to try to reinstate the measures in the Commons.He urged ministers not to try to reinstate the measures in the Commons.
"For months Labour has been determined to stop this cruel attack on cancer patients in its tracks. And today the House of Lords agreed," he said."For months Labour has been determined to stop this cruel attack on cancer patients in its tracks. And today the House of Lords agreed," he said.
"The government's proposal to cut paid-for benefits for people still in chemotherapy crosses the basic test of fairness.""The government's proposal to cut paid-for benefits for people still in chemotherapy crosses the basic test of fairness."