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| Version 1 | Version 2 |
|---|---|
| Labour 'would keep child benefit cuts' made by coalition | Labour 'would keep child benefit cuts' made by coalition |
| (about 4 hours later) | |
| A future Labour government would not reverse cuts to child benefit made by the coalition, the BBC has learned. | A future Labour government would not reverse cuts to child benefit made by the coalition, the BBC has learned. |
| Labour has criticised the cuts, but its leadership believes it could not afford the £2.3bn needed to reverse them. | Labour has criticised the cuts, but its leadership believes it could not afford the £2.3bn needed to reverse them. |
| On Thursday, party leader Ed Miliband is due to say he supports capping the amount the next government will spend on welfare benefits. | On Thursday, party leader Ed Miliband is due to say he supports capping the amount the next government will spend on welfare benefits. |
| Earlier this week the party announced it would cut winter fuel payments for wealthier pensioners. | Earlier this week the party announced it would cut winter fuel payments for wealthier pensioners. |
| Economic credibility | Economic credibility |
| When the government decided to cut child benefits from higher taxpayers, Labour attacked the move as unfair and said it proved the government was out of touch with hard-working families. | When the government decided to cut child benefits from higher taxpayers, Labour attacked the move as unfair and said it proved the government was out of touch with hard-working families. |
| BBC political editor Nick Robinson says he understands Labour's leadership has concluded it would not be able to reverse the cuts as the money needed would be 23 times the amount that would be saved by removing the winter fuel allowance from better off pensioners - the policy unveiled by Shadow Chancellor Ed Balls. | BBC political editor Nick Robinson says he understands Labour's leadership has concluded it would not be able to reverse the cuts as the money needed would be 23 times the amount that would be saved by removing the winter fuel allowance from better off pensioners - the policy unveiled by Shadow Chancellor Ed Balls. |
| Nick Robinson says some critics are likely to see this as more evidence that Labour has abandoned its support for so-called universal benefits - those paid to all regardless of their income. | |
| On Thursday, Mr Miliband will also declare his support in principle for an idea first suggested by Chancellor George Osborne - a cap on that part of the benefits bill which is not triggered simply by a rise in unemployment. | On Thursday, Mr Miliband will also declare his support in principle for an idea first suggested by Chancellor George Osborne - a cap on that part of the benefits bill which is not triggered simply by a rise in unemployment. |
| It is being seen as a further sign that Labour is trying to restore its economic credibility by proving it has the will to curb spending. | |
| A Labour source said Mr Balls had made clear the party must "start planning for a tough inheritance because of this government's economic failure". | |
| "He also made clear we cannot write our first Budget today - two years ahead of a general election." | |
| Spending power | Spending power |
| Labour's plans to cut winter fuel payments for the UK's richer older people would affect about 600,000 people over 61 who pay higher and top income tax rates - saving about £100m. | Labour's plans to cut winter fuel payments for the UK's richer older people would affect about 600,000 people over 61 who pay higher and top income tax rates - saving about £100m. |
| Labour may also curb new free schools and police commissioners to save money. | Labour may also curb new free schools and police commissioners to save money. |
| Mr Balls said it would be "completely irresponsible" for Labour to pledge higher spending in 2015-6, after the next election, given the likely "bleak" state of the finances. | Mr Balls said it would be "completely irresponsible" for Labour to pledge higher spending in 2015-6, after the next election, given the likely "bleak" state of the finances. |
| Conservative MP Robert Halfon responded to Labour's announcements by tweeting: "Tories should send thank you emails to Balls & Miliband for conceding welfare debate to Conservatives. Ending universalism & handouts to rich." | |
| He added: "Now Labour are going to slash pensioner & child benefits, not so easy for them to scare pensioners & parents as to Tory plans." | |
| Meanwhile, a study by the Institute for Fiscal Studies has suggested that the average middle-income family in Britain is likely to be nearly £1,800 a year worse-off by 2015. | Meanwhile, a study by the Institute for Fiscal Studies has suggested that the average middle-income family in Britain is likely to be nearly £1,800 a year worse-off by 2015. |
| Families with two children will see a fall of £34 in their weekly incomes, after adjusting for inflation. A childless couple are likely to lose £1,248 a year, or £24 a week, it said on Tuesday. | Families with two children will see a fall of £34 in their weekly incomes, after adjusting for inflation. A childless couple are likely to lose £1,248 a year, or £24 a week, it said on Tuesday. |
| The IFS also said that over the next three years, less well-off families would be hit harder than those with higher incomes. | The IFS also said that over the next three years, less well-off families would be hit harder than those with higher incomes. |
| The cuts in spending power were down to incomes failing to keep pace with inflation and changes to the benefits system, it added. | The cuts in spending power were down to incomes failing to keep pace with inflation and changes to the benefits system, it added. |