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Welfare changes are fair, says Cameron Government wins three benefit votes in Commons
(40 minutes later)
  
Prime Minister David Cameron has said welfare changes are "right and fair" and challenged Labour to support the government's benefit cap plan. MPs have overturned three of seven defeats inflicted on the Welfare Reform Bill in the House of Lords.
The £26,000-a-year cap is one of seven areas on which the Welfare Reform Bill has suffered defeats in the Lords. Seven amendments were backed by peers over the past week but the government has pledged to overturn them.
The bill has now returned to the Commons as ministers say they are determined to get their plans through. MPs have voted down Lords changes to reduce entitlements to employment and support allowance (ESA).
Labour say they support the benefit cap in principle - but want changes to the way it is implemented. Prime Minister David Cameron said the plans were "right and fair" but Labour criticised changes that would affect cancer patients as "dreadful".
MPs have already voted down one Lords amendment by 324 votes to 265. It would have ensured young disabled people who have never worked will continue to be able to receive "contributory" employment and support allowance - usually paid to those who have paid enough National Insurance. As the debate got under way on Wednesday, MPs voted by 324 to 265 to back the government over plans to stop young disabled people who have never worked from being able to claim "contributory" ESA.
Labour's position on the cap - which is set at the equivalent to the average post-tax salary of a working household - came under attack at Prime Minister's Questions. They backed ministers by 332 to 266 over plans to means-test the same allowance after 12 months.
'Complete silence''Complete silence'
And they voted down a peers' amendment that would have exempted cancer patients from means testing by 328 to 265.
Earlier Mr Cameron challenged Labour to support the government's plans for a £26,000 annual cap on benefits to working-age households.
Labour's position on the cap - which is set at the equivalent to the average post-tax salary of a working household - is that they support it in principle - but want changes to the way it is implemented.
Mr Cameron repeatedly pressed Labour Leader Ed Miliband to say whether he would support the government, on what ministers say is a plan that has a lot of public support, accusing him of "complete silence" on the issue.Mr Cameron repeatedly pressed Labour Leader Ed Miliband to say whether he would support the government, on what ministers say is a plan that has a lot of public support, accusing him of "complete silence" on the issue.
At the weekend, Labour's shadow work and pensions secretary Liam Byrne said Labour would not be supporting the cap as it stood - because of concerns that it would force many families out of their homes.At the weekend, Labour's shadow work and pensions secretary Liam Byrne said Labour would not be supporting the cap as it stood - because of concerns that it would force many families out of their homes.
He said the party would instead push for a local cap on benefits - to vary across the country and reflect different housing benefit rates - rather than one £500-a-week/£26,000-a-year cap across England, Scotland and Wales.He said the party would instead push for a local cap on benefits - to vary across the country and reflect different housing benefit rates - rather than one £500-a-week/£26,000-a-year cap across England, Scotland and Wales.
Labour sources said on Wednesday the party would vote against the benefits cap and will put down their own amendment on a flexible cap set by an independent commission.Labour sources said on Wednesday the party would vote against the benefits cap and will put down their own amendment on a flexible cap set by an independent commission.
The cap is just one of seven areas where peers voted against the government. MPs are now debating whether to back other amendments made by peers, or throw them out - re-introducing aspects of the proposed legislation rejected by peers.
MPs are now debating whether to back amendments made by peers, or throw them out - re-introducing aspects of the proposed legislation rejected by peers.
The government says it intends to overturn the following measures agreed by the Lords:The government says it intends to overturn the following measures agreed by the Lords:
  • Excluding child benefit from the £26,000 cap on total benefits to households
  • Not charging single parents to access child maintenance if they take reasonable steps to reach a settlement
  • Exempting cancer patients from means-testing of employment support allowance
  • Extending eligibility for Employment and Support Allowance (ESA) prior to means-testing from one to two years
  • Allowing young disabled people to continue claiming National Insurance contribution-based ESA
  • Exempting social tenants with one spare room from "under-occupancy" penalties
  • Excluding child benefit from the £26,000 cap on total benefits to households
  • Not charging single parents to access child maintenance if they take reasonable steps to reach a settlement
  • Exempting cancer patients from means-testing of employment support allowance
  • Extending eligibility for Employment and Support Allowance (ESA) prior to means-testing from one to two years
  • Allowing young disabled people to continue claiming National Insurance contribution-based ESA
  • Exempting social tenants with one spare room from "under-occupancy" penalties
The government suffered its latest defeat on Tuesday when a coalition of crossbench and Labour peers - supported by two Conservatives and seven Lib Dems - voted to limit a proposed reduction to the lower rate of the "disabled child element" of Child Tax Credits.The government suffered its latest defeat on Tuesday when a coalition of crossbench and Labour peers - supported by two Conservatives and seven Lib Dems - voted to limit a proposed reduction to the lower rate of the "disabled child element" of Child Tax Credits.
A crossbench amendment tabled by Baroness Meacher calling for the lower rate to be at least two-thirds of the value of the higher rate - which ministers have proposed raising - was passed by 16 votes.A crossbench amendment tabled by Baroness Meacher calling for the lower rate to be at least two-thirds of the value of the higher rate - which ministers have proposed raising - was passed by 16 votes.
The government says it wants to target support at the children with the highest care needs - and say there will be transitional protection so those already in receipt of the benefit will not lose money.The government says it wants to target support at the children with the highest care needs - and say there will be transitional protection so those already in receipt of the benefit will not lose money.
But SDLP MP Margaret Ritchie said at prime minister's questions it would hit working people facing severe financial difficulties - and could cost them over £1,300 a year.But SDLP MP Margaret Ritchie said at prime minister's questions it would hit working people facing severe financial difficulties - and could cost them over £1,300 a year.
Mr Cameron said ministers needed to revamp tax credits and said: "Disability living allowance, the absolutely key benefit, is going up by 5.2% this April, which will be well ahead of inflation."Mr Cameron said ministers needed to revamp tax credits and said: "Disability living allowance, the absolutely key benefit, is going up by 5.2% this April, which will be well ahead of inflation."
He added that with the universal credit anyone currently on the lower tax credit disability rate would be "completely protected through transitional payments"He added that with the universal credit anyone currently on the lower tax credit disability rate would be "completely protected through transitional payments"
He said the higher rate had not yet been set but would be "at least what it is now, and possibly higher".He said the higher rate had not yet been set but would be "at least what it is now, and possibly higher".
However Labour MP Sheila Gilmore accused him of "being so much tougher on the vulnerable than the powerful".However Labour MP Sheila Gilmore accused him of "being so much tougher on the vulnerable than the powerful".
Shadow Work and Pensions Secretary Mr Byrne said Labour was determined to force the government to change the bill.Shadow Work and Pensions Secretary Mr Byrne said Labour was determined to force the government to change the bill.
"Welfare to work needs jobs - and this bill doesn't create a single one," he said."Welfare to work needs jobs - and this bill doesn't create a single one," he said.
"Instead it cuts support for people trying to do the right thing, like mums trying to go back to work and families trying to save, and quite frankly it crosses a line of basic British decency.""Instead it cuts support for people trying to do the right thing, like mums trying to go back to work and families trying to save, and quite frankly it crosses a line of basic British decency."