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MPs set to vote on setting annual welfare cap MPs voting on setting annual welfare cap
(35 minutes 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 voting 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 cap will include spending on the vast majority of benefits, including pension credits, severe disablement allowance, incapacity benefits, child benefit, both maternity and paternity pay, universal credit and housing benefit.The cap will include spending on the vast majority of benefits, including pension credits, severe disablement allowance, incapacity benefits, child benefit, both maternity and paternity pay, universal credit and housing benefit.
However, Jobseeker's Allowance and the state pension will be excluded.However, Jobseeker's Allowance and the state pension will be excluded.
Under the proposed system - being debated by MPs - if a government wanted to spend more on one area of the welfare state it would have to compensate by making cuts elsewhere, to stay within the overall cap.Under the proposed system - being debated by MPs - if a government wanted to spend more on one area of the welfare state it would have to compensate by making cuts elsewhere, to stay within the overall cap.
If the limit is breached - or going to be breached - ministers would have to explain why to Parliament and get the approval of MPs in a vote.If the limit is breached - or going to be breached - ministers would have to explain why to Parliament and get the approval of MPs in a vote.
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".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 "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.He insisted it was not punishing benefit claimants but was a recognition that money was "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.
Labour has said it would introduce a three-year cap on structural spending, covering all the benefits included in the government's proposal.Labour has said it would introduce a three-year cap on structural spending, covering all the benefits included in the government's proposal.
But Mr Duncan Smith said Labour needed to explain how it would pay for its £460m pledge to reverse changes to cuts to housing benefit for additional rooms in council and social housing.But Mr Duncan Smith said Labour needed to explain how it would pay for its £460m pledge to reverse changes to cuts to housing benefit for additional rooms in council and social housing.
"They have to say immediately now what they would reduce in that spending to be able to afford that - otherwise they are voting to break the cap," he told BBC Radio 4's Today."They have to say immediately now what they would reduce in that spending to be able to afford that - otherwise they are voting to break the cap," he told BBC Radio 4's Today.
"I think there is a bit of scam going on," he added. "What they (Labour) are trying to persuade their own backbenchers is 'don't worry, we won't implement this as it stands'.""I think there is a bit of scam going on," he added. "What they (Labour) are trying to persuade their own backbenchers is 'don't worry, we won't implement this as it stands'."
'Arbitrary cuts''Arbitrary cuts'
The shadow work and pensions secretary, Rachel Reeves, said Labour had plans in place to pay for its pledge to reverse what it calls the "bedroom tax" - the housing benefit changes that ministers say ended the "spare room subsidy".The shadow work and pensions secretary, Rachel Reeves, said Labour had plans in place to pay for its pledge to reverse what it calls the "bedroom tax" - the housing benefit changes that ministers say ended the "spare room subsidy".
She told Today that Labour was already committed to taking "tough decisions" on welfare - such as cutting winter fuel allowance for better-off pensioners.She told Today that Labour was already committed to taking "tough decisions" on welfare - such as cutting winter fuel allowance for better-off pensioners.
Asked whether Labour was prepared to cut aspects of the welfare bill to stay within the cap, she said she was "confident" it would not need to because it would tackle the "root causes" of rising costs - such as low wages, youth unemployment and the number of people unable to find full time work.Asked whether Labour was prepared to cut aspects of the welfare bill to stay within the cap, she said she was "confident" it would not need to because it would tackle the "root causes" of rising costs - such as low wages, youth unemployment and the number of people unable to find full time work.
"The government have failed in their approach. We would do it in different ways to the way the government is proposing to do it but we are confident that our way will control the cost of social security.""The government have failed in their approach. We would do it in different ways to the way the government is proposing to do it but we are confident that our way will control the cost of social security."
'Social failure''Social failure'
A number of Labour backbenchers are expected to rebel in today's vote.A number of Labour backbenchers are expected to rebel in today's vote.
Speaking in the Commons, Diane Abbott said she wanted to bring down the welfare bill as rising spending was "the price of government and social failure".Speaking in the Commons, Diane Abbott said she wanted to bring down the welfare bill as rising spending was "the price of government and social failure".
But she said a cap was a blunt mechanism that would not take into account changes in people's circumstances and economic factors such as rising rents.But she said a cap was a blunt mechanism that would not take into account changes in people's circumstances and economic factors such as rising rents.
"Social security, people's lives, should not be made a matter of short-term political positioning," she said."Social security, people's lives, should not be made a matter of short-term political positioning," she said.
"There is no credit to MPs if they constantly talk in a derogatory way of those people who claim benefits.""There is no credit to MPs if they constantly talk in a derogatory way of those people who claim benefits."
'Safety net''Safety net'
But Tory MP Ben Gummer said it was "astounding" more was being spent on annual managed expenditure - which covers benefits, tax credits and state pensions - than other departmental budgets put together.But Tory MP Ben Gummer said it was "astounding" more was being spent on annual managed expenditure - which covers benefits, tax credits and state pensions - than other departmental budgets put together.
He said the cap would force governments to address the underlying causes of welfare dependency rather than just "jacking up the bill every time they are faced with a difficult problem".He said the cap would force governments to address the underlying causes of welfare dependency rather than just "jacking up the bill every time they are faced with a difficult problem".
Lib Dem MP John Hemming said the welfare state should provide a "solid safety net" but it was "nonsense" to suggest that total costs should not be managed.Lib Dem MP John Hemming said the welfare state should provide a "solid safety net" but it was "nonsense" to suggest that total costs should not be managed.
"If we spend more than we expect to, as an absolute minimum ministers should explain why.""If we spend more than we expect to, as an absolute minimum ministers should explain why."
BBC political correspondent Chris Mason said the proposed government cap for next year was, in broad terms, what the UK was already spending on those benefits.BBC political correspondent Chris Mason said the proposed government cap for next year was, in broad terms, what the UK was already spending on those benefits.
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.