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| Version 2 | Version 3 |
|---|---|
| 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. | 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". | 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. | But she said the government should do more to tackle the root causes of rising welfare costs. |
| 'Scam' | |
| However, Work and Pensions Secretary Iain Duncan Smith said Labour would break the cap unless it made clear how it would pay for its pledge to reverse changes to cuts to housing benefit. | |
| Mr Duncan Smith told the BBC that the cap would stop politicians in the future from saying welfare spending "was under control when it was rising". | |
| He insisted it was not punishing benefit claimants but was a recognition that money was not "finite", adding that it would give ministers greater flexibility to adjust spending in different areas while being more "accountable" to the taxpayer for overall expenditure. | |
| 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. | 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. | "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. | 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. | 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. |