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MPs set to vote on £120bn annual welfare cap | MPs set to vote on £120bn annual welfare cap |
(about 1 hour later) | |
MPs are set to vote on plans to introduce an overall cap on the amount the UK spends on welfare each year. | MPs are set to vote on plans to introduce an overall cap on the amount the UK spends on welfare each year. |
Welfare spending, excluding the state pension and some unemployment benefits, would be capped next year at £119.5bn. | Welfare spending, excluding the state pension and some unemployment benefits, would be capped next year at £119.5bn. |
The idea, put forward by Chancellor George Osborne in last week's Budget, would in future see limits set at the beginning of each Parliament. | |
Labour leader Ed Miliband has backed a welfare cap but some party backbenchers are expected to vote against the plan. | Labour leader Ed Miliband has backed a welfare cap but some party backbenchers are expected to vote against the plan. |
The shadow work and pensions secretary, Rachel Reeves, said Labour recognised "the need to get a grip on costs of welfare spending" and said a cap would "provide discipline". | |
But she said the government should do more to tackle the root causes of rising welfare costs. | |
Last summer, the government imposed a benefits cap of £500 a week for couples or single parents, and £350 a week for single adults. | Last summer, the government imposed a benefits cap of £500 a week for couples or single parents, and £350 a week for single adults. |
However, the new proposal would also introduce an overall cap on total government spending on the vast majority of benefits. | However, the new proposal would also introduce an overall cap on total government spending on the vast majority of benefits. |
'Arbitrary cuts' | 'Arbitrary cuts' |
The chancellor says welfare spending should "never again" be allowed to "spiral out of control". | The chancellor says welfare spending should "never again" be allowed to "spiral out of control". |
As part of the plans, pension credits, severe disablement allowance, incapacity benefits, child benefit, both maternity and paternity pay and universal credit will all fall within the scope of the cap. | As part of the plans, pension credits, severe disablement allowance, incapacity benefits, child benefit, both maternity and paternity pay and universal credit will all fall within the scope of the cap. |
Housing benefit, apart from the benefit linked to Jobseeker's Allowance, will also be capped. | Housing benefit, apart from the benefit linked to Jobseeker's Allowance, will also be capped. |
If the limit is breached, the chancellor would have to explain why and a vote held in Parliament. | If the limit is breached, the chancellor would have to explain why and a vote held in Parliament. |
BBC political correspondent Chris Mason said the proposed limit for next year was, in broad terms, what the UK was already spending on those benefits. | |
"The cap is more than just a tool for budget management in Whitehall: It is a nakedly political device too, forcing the opposition to decide whether to support it, or not," he said. | |
Mr Miliband last year said a future Labour government would introduce a three-year cap on structural spending, including housing benefits. | Mr Miliband last year said a future Labour government would introduce a three-year cap on structural spending, including housing benefits. |
He has also said his party will vote in favour of the government proposal. However, a number of Labour backbenchers are expected to rebel in today's vote. | |
Root cause | Root cause |
Former leadership contender Diane Abbott has said she will be among the MPs planning to defy the Labour whips and vote against the coalition proposal. | Former leadership contender Diane Abbott has said she will be among the MPs planning to defy the Labour whips and vote against the coalition proposal. |
"We think this cap will just encourage arbitrary cuts rather than long-term policies because that will bring down welfare spending," the Hackney North and Stoke Newington MP said. | "We think this cap will just encourage arbitrary cuts rather than long-term policies because that will bring down welfare spending," the Hackney North and Stoke Newington MP said. |
"It's also part of the narrative to demonise benefit claimants. I don't think we should allow George Osborne to play politics with this issue, because it is people's lives." | "It's also part of the narrative to demonise benefit claimants. I don't think we should allow George Osborne to play politics with this issue, because it is people's lives." |
She added: "What we need to be doing is setting up an alternative narrative on benefits to George Osborne." | She added: "What we need to be doing is setting up an alternative narrative on benefits to George Osborne." |
Shadow chancellor Ed Balls said Labour had called for an overall cap on social security spending last year and "will support the welfare cap". | Shadow chancellor Ed Balls said Labour had called for an overall cap on social security spending last year and "will support the welfare cap". |
However, he said: "George Osborne has already broken his own targets in this Parliament. His failure to tackle low wages, deal with the cost-of-living crisis and get more homes built means he is set to spend £13bn more on welfare than he originally planned." | However, he said: "George Osborne has already broken his own targets in this Parliament. His failure to tackle low wages, deal with the cost-of-living crisis and get more homes built means he is set to spend £13bn more on welfare than he originally planned." |
Are you currently receiving welfare benefits? Email us at haveyoursay@bbc.co.uk adding 'Welfare cap' in the subject heading and include your contact details. |