This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/uk-politics-20886192
The article has changed 4 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
Iain Duncan Smith calls benefit rises unfair | Iain Duncan Smith calls benefit rises unfair |
(about 5 hours later) | |
It is unfair for benefits to rise at a faster rate than wages, the work and pensions secretary has said ahead of a key Commons vote on capping benefits. | It is unfair for benefits to rise at a faster rate than wages, the work and pensions secretary has said ahead of a key Commons vote on capping benefits. |
Figures highlighted by Iain Duncan Smith show jobless benefits rose 20% in the last five years, compared with an average 12% rise in private sector pay. | Figures highlighted by Iain Duncan Smith show jobless benefits rose 20% in the last five years, compared with an average 12% rise in private sector pay. |
He said benefits should no longer automatically increase with inflation. | He said benefits should no longer automatically increase with inflation. |
But Labour said job seekers allowance had failed to keep pace with wages over the past 10 years. | But Labour said job seekers allowance had failed to keep pace with wages over the past 10 years. |
MPs are due to debate legislation on Tuesday which is designed to break the link between benefit rises and inflation. | MPs are due to debate legislation on Tuesday which is designed to break the link between benefit rises and inflation. |
Instead there will be a three-year cap of 1% - which is below the expected rise in the cost of living - on most working-age benefits and tax credits for three years from 2013/14. | Instead there will be a three-year cap of 1% - which is below the expected rise in the cost of living - on most working-age benefits and tax credits for three years from 2013/14. |
Child benefit, housing benefit and universal credit will be capped for two years from 2014/15. | Child benefit, housing benefit and universal credit will be capped for two years from 2014/15. |
The Opposition, who will fight the 1% cap, say that job seekers allowance has risen by 32% over the past decade, whereas wages have gone up by 36%. | The Opposition, who will fight the 1% cap, say that job seekers allowance has risen by 32% over the past decade, whereas wages have gone up by 36%. |
BBC political correspondent Gary O'Donoghue said that these are not new figures from either the government or the Labour party. | BBC political correspondent Gary O'Donoghue said that these are not new figures from either the government or the Labour party. |
"But this is not really a row over numbers - this is a battle to win not just a Parliamentary vote, but the public argument over whether those on benefits should feel the squeeze to the same extent as those in work," our correspondent said. | "But this is not really a row over numbers - this is a battle to win not just a Parliamentary vote, but the public argument over whether those on benefits should feel the squeeze to the same extent as those in work," our correspondent said. |
'Tightening belts' | 'Tightening belts' |
The Chancellor George Osborne told MPs in his Autumn Statement last month that the incomes of those on out-of-work benefits had risen "twice as fast as those in work" over the last five years. | The Chancellor George Osborne told MPs in his Autumn Statement last month that the incomes of those on out-of-work benefits had risen "twice as fast as those in work" over the last five years. |
Iain Duncan Smith said that working families had been tightening their belts after years of pay restraint while watching benefits rise - and that, he said, was not fair. | Iain Duncan Smith said that working families had been tightening their belts after years of pay restraint while watching benefits rise - and that, he said, was not fair. |
Increases had cost the taxpayer £6.3bn since the start of the 2008 recession, he said. | Increases had cost the taxpayer £6.3bn since the start of the 2008 recession, he said. |
"The welfare state under Labour effectively trapped thousands of families into dependency as it made no sense to give up the certainty of a benefit payment in order to go back to work. | "The welfare state under Labour effectively trapped thousands of families into dependency as it made no sense to give up the certainty of a benefit payment in order to go back to work. |
"This government is restoring fairness to the system and universal credit will ensure it always pays to be in work." | "This government is restoring fairness to the system and universal credit will ensure it always pays to be in work." |
Shadow work and pensions secretary Liam Byrne said cuts to tax credits had pushed millions of working families into poverty and now meant thousands of part-time workers were "better off on benefits". | Shadow work and pensions secretary Liam Byrne said cuts to tax credits had pushed millions of working families into poverty and now meant thousands of part-time workers were "better off on benefits". |
"Now he wants to hit working families again with his strivers tax bill. Yet this omnishambles government thinks its right to give an average £107,000 tax cut for 8,000 millionaires," he said. | "Now he wants to hit working families again with his strivers tax bill. Yet this omnishambles government thinks its right to give an average £107,000 tax cut for 8,000 millionaires," he said. |
"This Tory-led government is comprehensively out of touch with the reality of Britain's working families." | "This Tory-led government is comprehensively out of touch with the reality of Britain's working families." |