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David Cameron to urge debate on welfare pay-outs David Cameron to urge debate on welfare pay-outs
(40 minutes later)
David Cameron is set to call for a wider debate about welfare, arguing the current system promotes a "something for nothing" culture of entitlement.David Cameron is set to call for a wider debate about welfare, arguing the current system promotes a "something for nothing" culture of entitlement.
In a speech in Kent, the prime minister will say that many of his ideas for change are for the next Conservative manifesto not the coalition government.In a speech in Kent, the prime minister will say that many of his ideas for change are for the next Conservative manifesto not the coalition government.
He will say the system is encouraging working-age people to have children but not work, making taxpayers resentful.
One of the ideas he is considering is removing housing benefit for under-25s.One of the ideas he is considering is removing housing benefit for under-25s.
BBC political correspondent Vicki Young said Mr Cameron's speech would be seen as an attempt to reconnect with disgruntled Tory backbenchers who had accused him of allowing the Lib Dems to water down traditional party values. Shadow Work and Pensions Secretary Liam Byrne described Mr Cameron's ideas for change as "hazy and half-baked".
But she said the Lib Dems insisted that the coalition had already brought in sweeping changes to welfare. Mr Cameron's speech is being seen as an attempt to reconnect with disgruntled Tory backbenchers who have accused him of allowing the Liberal Democrats to water down traditional party values.
'Strange signals' But the Lib Dems point out the coalition has already brought in sweeping changes to welfare which "need time to bed in" and warned against "repeating the mistakes of the 1980s".
'Devastating impact'
Mr Cameron's ideas were previewed in an interview in the Mail on Sunday, in which he said the existing welfare system was sending out "strange signals" on working, housing and families.Mr Cameron's ideas were previewed in an interview in the Mail on Sunday, in which he said the existing welfare system was sending out "strange signals" on working, housing and families.
Scrapping housing benefit for people aged under 25 would save almost £2bn a year but housing charity Shelter fears the consequences of such a move. He will say later that the system is encouraging working-age people to have children but not work, making taxpayers resentful.
Its chief executive, Campbell Robb, said: "To take away housing benefit from hundreds of thousands of young people - particularly in the current economic environment where young people in particular are finding it very difficult to find jobs - would have a devastating impact on many people's lives. David Cameron is not just calling for a minor tweak to the welfare state - he is opening the door to a re-casting of the entire welfare system and who it is meant to serve.
"The time has come to go back to first principles," he says.
If the welfare state is meant to be a safety net, he argues, then a lot of people are receiving benefits who are not in need, and therefore should not be receiving them.
Hence he raises the prospect of limits to the amount of support claimants should expect for larger families; curbs to the rights of young people to get help with their rent; and tougher requirements on those seeking work.
It is a bold statement of intent that will reassure and please an unsettled Tory party, both inside and outside Parliament.
But it carries with it a huge political danger? It risks undermining what was Mr Cameron core pitch to the electorate, namely that he was a different sort of Tory leader.
His critics will seize on this -together with the apparent playing down of the green agenda and wobbles over gay marriage - as further evidence that Mr Cameron is turning his back on Compassionate Conservatism and returning to a much more traditional Tory agenda.
Mr Cameron also suggested introducing new curbs on the jobseekers' allowance.
His idea to scrap housing benefit for people aged under 25 would save almost £2bn a year, but housing charity Shelter fears the consequences of such a move.
Chief executive Campbell Robb said: "To take away housing benefit from hundreds of thousands of young people - particularly in the current economic environment where young people in particular are finding it very difficult to find jobs - would have a devastating impact on many people's lives.
"I think we would see many more people ending up homeless as a result of this kind of very significant change.""I think we would see many more people ending up homeless as a result of this kind of very significant change."
On Sunday, Labour said the idea could see young people knocked off the career ladder and a "serious back-to-work programme" was needed instead. Labour's Mr Byrne said the prime minister was "coming at it from the wrong approach for the long-term".
Mr Cameron also suggested introducing new curbs on the jobseeker's allowance. "First we need stronger action to help people get back into work so Labour has said 'Let's put in place a jobs guarantee for young people'. We're starting a debate about how childcare and social care could actually help people work the hours that are on offer," he said.
'Bed changes in' "We know that we need new answers on social housing and we know we need radical reform of private pensions.... very different answers are needed to the kinds of things that the prime minister is talking about."
Lib Dem Chief Secretary to the Treasury Danny Alexander told BBC One's Sunday Politics that Mr Cameron was free to set out his own thinking but that the coalition had already brought in radical welfare reform, which should be allowed to "bed-in". BBC home editor Mark Easton said the Conservatives wanted to use the welfare system to change people's behaviour.
In March, the government's Welfare Reform Act received Royal Assent. That act - which applies to England, Scotland and Wales - introduces an annual cap on benefits and overhauls many welfare payments.In March, the government's Welfare Reform Act received Royal Assent. That act - which applies to England, Scotland and Wales - introduces an annual cap on benefits and overhauls many welfare payments.
Lib Dem Chief Secretary to the Treasury Danny Alexander told BBC One's Sunday Politics show that Mr Cameron was free to set out his own thinking but that the coalition had already brought in radical welfare reform, which should be allowed to "bed-in".
In recent weeks the numbers of people claiming housing benefit reached five million for the first time.In recent weeks the numbers of people claiming housing benefit reached five million for the first time.
Chancellor George Osborne indicated in his March Budget that the welfare bill should be cut by another £10bn between 2015 - the expected year of the next election - and 2017. That is on top of the £18bn of cuts during the current parliament.Chancellor George Osborne indicated in his March Budget that the welfare bill should be cut by another £10bn between 2015 - the expected year of the next election - and 2017. That is on top of the £18bn of cuts during the current parliament.
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