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David Cameron to urge debate on welfare pay-outs Regional rates of benefits considered by David Cameron
(about 3 hours 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 considering bringing in regional rates of benefits, as part of a "wider debate" about welfare.
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. No 10 says the prime minister wants to look at whether "it makes sense" to set benefits at a national level, given differing regional pay levels.
One of the ideas he is considering is removing housing benefit for under-25s. The news came ahead of a speech in Kent in which the PM is putting forward a range of possible welfare changes.
Shadow Work and Pensions Secretary Liam Byrne described Mr Cameron's ideas for change as "hazy and half-baked". The ideas are expected to be ones for the next Tory manifesto, rather than for the current coalition government.
Proposals being considered include removing housing benefit for under-25s and capping the number of children parents can claim benefits for.
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.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.
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". Regional rates of benefits - which would presumably see people in more affluent regions getting higher payments than in less affluent regions - would be likely to prove controversial.
No 10 stressed that no decision had been taken, and it is thought that regionally-based payments would only apply to working-age benefits.
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''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.
He will say later that the system is encouraging working-age people to have children but not work, making taxpayers resentful. He is expected to say that the system was encouraging working-age people to have children but not work, making taxpayers resentful.
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.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."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.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.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.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.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.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.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.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.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."
The Work and Pensions Secretary Iain Duncan Smith told BBC Radio 4's Today programme that even though the government was engaged in "the most radical and wide-ranging welfare reform in a generation", there was still a need to ask questions about the future of working-age benefits.The Work and Pensions Secretary Iain Duncan Smith told BBC Radio 4's Today programme that even though the government was engaged in "the most radical and wide-ranging welfare reform in a generation", there was still a need to ask questions about the future of working-age benefits.
"I think he is looking quite rightly at the balance between those families who work and try and do the right thing against those families that aren't necessarily working and have understood how to work a system.""I think he is looking quite rightly at the balance between those families who work and try and do the right thing against those families that aren't necessarily working and have understood how to work a system."
Labour's Mr Byrne said the prime minister was "coming at it from the wrong approach for the long-term".Labour's Mr Byrne said the prime minister was "coming at it from the wrong approach for the long-term".
"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."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.
"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.""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."
BBC home editor Mark Easton said the Conservatives wanted to use the welfare system to change people's behaviour.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".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.
Are you in receipt of benefits? Are you concerned about possible benefit changes? Please send us your comments using the form below.Are you in receipt of benefits? Are you concerned about possible benefit changes? Please send us your comments using the form below.