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-20936833

The article has changed 14 times. There is an RSS feed of changes available.

Version 2 Version 3
MPs to vote on 1% cap on annual benefit increases MPs to vote on 1% cap on annual benefit increases
(35 minutes later)
MPs are to vote on controversial government plans to put a 1% cap on annual rises in working-age benefits and some tax credits until 2016.MPs are to vote on controversial government plans to put a 1% cap on annual rises in working-age benefits and some tax credits until 2016.
Benefits have historically risen in line with the rate of inflation and increased by more than 5% in 2012-3.Benefits have historically risen in line with the rate of inflation and increased by more than 5% in 2012-3.
Labour, which opposes the change, say it will result in a real-terms cut in support for millions of working people.Labour, which opposes the change, say it will result in a real-terms cut in support for millions of working people.
The coalition says public sector pay is capped at 1% and benefits should not be rising at a faster rate than wages.The coalition says public sector pay is capped at 1% and benefits should not be rising at a faster rate than wages.
Prime Minister David Cameron and his deputy Nick Clegg have said they do not "relish" imposing the cap but argue that billions of pounds of further savings are needed to reduce the deficit and have challenged Labour to come up with an alternative plan. Prime Minister David Cameron and his deputy Nick Clegg have said they do not "relish" imposing the cap but argue billions of pounds of further savings are needed to reduce the deficit and have challenged Labour to come up with an alternative.
Legislation is needed to implement changes announced by Chancellor George Osborne in last month's Autumn Statement - to cap increases in jobseeker's allowance, employment and support allowance, income support and elements of housing benefit at 1% for three years from April.Legislation is needed to implement changes announced by Chancellor George Osborne in last month's Autumn Statement - to cap increases in jobseeker's allowance, employment and support allowance, income support and elements of housing benefit at 1% for three years from April.
'Fairer way''Fairer way'
The cap would also apply to maternity allowance, sick pay, maternity pay and paternity pay as well as the couple and lone parent elements of the working tax credit and the child element of the child tax credit.The cap would also apply to maternity allowance, sick pay, maternity pay and paternity pay as well as the couple and lone parent elements of the working tax credit and the child element of the child tax credit.
These benefits traditionally rise in line with consumer prices in an annual process known as uprating.These benefits traditionally rise in line with consumer prices in an annual process known as uprating.
They increased 5.2% this year and without the planned change would have been set to rise by 2.2% - the rate of CPI inflation last September on which the figure is calculated. The rate of inflation has since risen to 2.7%.They increased 5.2% this year and without the planned change would have been set to rise by 2.2% - the rate of CPI inflation last September on which the figure is calculated. The rate of inflation has since risen to 2.7%.
Ahead of Tuesday's debate and vote in Parliament, Labour leader Ed Miliband said the move showed the government had the wrong priorities, contrasting the planned cap with its decision to cut the top rate of tax for those earning more than £150,000 a year. Ahead of Tuesday's vote, Labour leader Ed Miliband said the move showed the government had the wrong priorities, contrasting the planned cap with its decision to cut the top rate of tax for those earning more than £150,000 a year.
"By cutting the support that working families get - and more than 60% of those affected by the changes we are voting on are working families - that is going to be handicapping and stopping working families who want to get into work and do the right thing," he said."By cutting the support that working families get - and more than 60% of those affected by the changes we are voting on are working families - that is going to be handicapping and stopping working families who want to get into work and do the right thing," he said.
He rejected reports that some Labour MPs had misgivings about being seen to back an inflation-linked rise in benefits when most people had seen a real-terms cut in wages in recent years. He rejected reports some Labour MPs had misgivings about being seen to back an inflation-linked rise in benefits when most people had seen a real-terms cut in wages in recent years.
"What we are voting for is a fairer way forward," he said."What we are voting for is a fairer way forward," he said.
"What we are saying is 'at a time when you are cutting taxes for the richest in society, that you penalise the most vulnerable in society and those going out to work, those people doing the right thing, the strivers that Mr Cameron says he stands for, it absolutely does not add up and it is the wrong thing to do.""What we are saying is 'at a time when you are cutting taxes for the richest in society, that you penalise the most vulnerable in society and those going out to work, those people doing the right thing, the strivers that Mr Cameron says he stands for, it absolutely does not add up and it is the wrong thing to do."
Ex-Liberal Democrat minister Sarah Teather has said she cannot support the proposal, saying she is "deeply anxious" about the impact it will have on the poorest in society and accusing ministers of using language reminiscent of "playground politics" to justify the move. Labour's job guarantee
Shadow work and pensions secretary Liam Byrne said: "Why should you give back £3bn to Britain's billionaires and take £6bn away from predominantly... working families?"
Labour said it wanted to introduce a compulsory job guarantee - where a person unemployed for a couple of years will no longer receive Job Seekers Allowance, and they will have to take a job, or be helped towards getting one.
"That's the right way to bring the welfare spend down - by getting people into jobs, not by taking another a big chunk of money out of people's tax credits," Mr Byrne told BBC Breakfast.
Liberal Democrat ex-minister Sarah Teather has said she cannot support the government's proposal, saying she is "deeply anxious" about the impact it will have on the poorest in society and accusing ministers of using language reminiscent of "playground politics" to justify the move.
It is not clear how many other Lib Dem MPs are likely to defy the government but the coalition is still expected to win the vote on the second reading of the welfare benefits uprating bill.It is not clear how many other Lib Dem MPs are likely to defy the government but the coalition is still expected to win the vote on the second reading of the welfare benefits uprating bill.
'Reasonable''Reasonable'
Lib Dem deputy leader Simon Hughes said he "would rather we didn't have to do it" but the move was "reasonable" given the "decent" rise in benefits in recent years and the pressure on pay in the public and private sectors. Lib Dem deputy leader Simon Hughes said the move was "reasonable" given the "decent" rise in benefits in recent years and pressure on pay in the public and private sectors.
He said the measures were "tough" but added: "If you are trying to pay off the deficit and the debt... then we have to look for savings." "If you are trying to pay off the deficit and the debt... then we have to look for savings," he said.
The cap, which will not apply to disability benefits, the state pension or pension credit, is estimated to generate annual savings of £1.9bn in cash terms by 2016.The cap, which will not apply to disability benefits, the state pension or pension credit, is estimated to generate annual savings of £1.9bn in cash terms by 2016.
The Department for Work and Pensions published research last week suggesting that jobless benefits rose by 20% in the last five years, compared with an average 12% rise in private sector pay. The Department for Work and Pensions published research last week suggesting jobless benefits rose by 20% in the last five years, compared with an average 12% rise in private sector pay.
"For years, the gap between those who earn and those who live on benefits has grown - and this government is restoring fairness to the system," Conservative Party chairman Grant Shapps said."For years, the gap between those who earn and those who live on benefits has grown - and this government is restoring fairness to the system," Conservative Party chairman Grant Shapps said.
But campaigners argue the changes will see many families struggling to make ends meet. But campaigners argue the changes will see many families struggling.
"From a nurse with two children losing £424 a year by 2015, to the Army second lieutenant with three children losing £552 a year, this will hit children and families from all walks of life," Matthew Reed, chief executive of The Children's Society, said."From a nurse with two children losing £424 a year by 2015, to the Army second lieutenant with three children losing £552 a year, this will hit children and families from all walks of life," Matthew Reed, chief executive of The Children's Society, said.
"Failure to make sure that benefit rates at the very least reflect rises in the cost of living will deepen inequality and increase poverty.""Failure to make sure that benefit rates at the very least reflect rises in the cost of living will deepen inequality and increase poverty."
Are you likely to be affected by the proposed changes? Send us your comments using the form below.Are you likely to be affected by the proposed changes? Send us your comments using the form below.