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| Version 1 | Version 2 |
|---|---|
| Ed Balls: Labour would cap rise in child benefit | Ed Balls: Labour would cap rise in child benefit |
| (35 minutes later) | |
| Families receiving child benefit would continue to see the value of their payments fall in real terms for the first two years of a Labour government. | Families receiving child benefit would continue to see the value of their payments fall in real terms for the first two years of a Labour government. |
| Ed Balls would extend the coalition's cap on increases in the benefit - due to expire in 2016 - for a further year. | Ed Balls would extend the coalition's cap on increases in the benefit - due to expire in 2016 - for a further year. |
| The shadow chancellor will announce the policy in a speech to Labour's annual conference in Manchester. | The shadow chancellor will announce the policy in a speech to Labour's annual conference in Manchester. |
| The move is part of a package of measures aimed at proving Labour is serious about "balancing the books". | The move is part of a package of measures aimed at proving Labour is serious about "balancing the books". |
| Under Mr Balls' plans, child benefit payments would not rise in line with inflation but by a fixed rate of 1% per year until 2017. The policy is already in place until 2016, having been announced by the coalition, but Labour's move would see it continue for another year. | Under Mr Balls' plans, child benefit payments would not rise in line with inflation but by a fixed rate of 1% per year until 2017. The policy is already in place until 2016, having been announced by the coalition, but Labour's move would see it continue for another year. |
| Millions of households which receive the benefit would be affected by the move. | |
| At the moment, one parent can claim £20.30 a week for an eldest child and £13.40 a week for each of their other children up to 16 and, in some cases, until they are 20 years old. | |
| 'Tough decisions' | 'Tough decisions' |
| Labour has repeatedly criticised the coalition government's benefit cuts, including Mr Osborne's decision to remove child benefit for higher earning households, which Mr Balls said in 2013 created "huge unfairness". | Labour has repeatedly criticised the coalition government's benefit cuts, including Mr Osborne's decision to remove child benefit for higher earning households, which Mr Balls said in 2013 created "huge unfairness". |
| But he will say in his conference speech that Labour is set to inherit an annual budget deficit of £75bn if it regains power and as a result will not be able to reverse most of the cuts and will have to introduce some of its own. | |
| He will say: "We will have to make other decisions which I know will not be popular with everyone. | He will say: "We will have to make other decisions which I know will not be popular with everyone. |
| "At a time when the public services that pensioners rely on are under such pressure, we will stop paying the winter fuel allowance to the richest 5% of pensioners. | "At a time when the public services that pensioners rely on are under such pressure, we will stop paying the winter fuel allowance to the richest 5% of pensioners. |
| "I want to see child benefit rising again in line with inflation in the next parliament, but we will not spend money we cannot afford. | "I want to see child benefit rising again in line with inflation in the next parliament, but we will not spend money we cannot afford. |
| "So for the first two years of the next parliament, we will cap the rise in child benefit at 1%. It will save £400m in the next Parliament. And all the savings will go towards reducing the deficit." | "So for the first two years of the next parliament, we will cap the rise in child benefit at 1%. It will save £400m in the next Parliament. And all the savings will go towards reducing the deficit." |
| Mr Balls says Labour would balance the books in a "fairer" way than the Conservatives because they would reinstate the 50% top rate of income tax. | Mr Balls says Labour would balance the books in a "fairer" way than the Conservatives because they would reinstate the 50% top rate of income tax. |
| "Now cannot be the right time to give the richest one per cent of people in the country a £3bn tax cut. So as we get the deficit down in the next parliament, the next Labour government will reverse this Tory tax cut for millionaires. | |
| "Because Labour will balance the books in a fairer way." | "Because Labour will balance the books in a fairer way." |
| Mr Balls will also announce plans for a 5% pay cut for government ministers with their pay to be frozen until the deficit has been cleared. | |
| "The next Labour government will get the deficit down," he will tell Labour delegates. | |
| "And Ed Miliband and all my shadow cabinet colleagues are clear it will mean cuts and tough decisions and we will take the lead." | |
| The Office for Budget Responsibility has forecast that annual borrowing will fall from £107.7bn last year to £95.5bn this year and £75bn in 2015-6. | |
| Devolution row | Devolution row |
| Labour used the first day of its final conference before the general election to unveil plans to increase the minimum wage to £8. | Labour used the first day of its final conference before the general election to unveil plans to increase the minimum wage to £8. |
| But that was overshadowed by an ongoing row about English devolution in the wake of Scotland's No vote in Thursday's independence referendum. | But that was overshadowed by an ongoing row about English devolution in the wake of Scotland's No vote in Thursday's independence referendum. |
| Mr Balls will attempt to shift the focus back on to Labour's economic policies - an area which the polls say Labour lags behind the Conservatives. | Mr Balls will attempt to shift the focus back on to Labour's economic policies - an area which the polls say Labour lags behind the Conservatives. |
| He told the BBC that all Labour's manifesto commitments would be "costed and paid for". | |
| But the Conservatives accused Mr Balls of making unfunded spending commitments - on policies such as its jobs guarantee for young people, which Labour says will be paid for by a tax on bankers' bonuses. | |
| They said the shadow chancellor's plan to cut ministerial pay would only amount to 0.003% of the deficit. | They said the shadow chancellor's plan to cut ministerial pay would only amount to 0.003% of the deficit. |
| Conservative MP John Redwood told the BBC: "I am glad they [Labour] realise they have got to do something about the deficit. | Conservative MP John Redwood told the BBC: "I am glad they [Labour] realise they have got to do something about the deficit. |
| "I don't know whether that is the best thing to do, it's a rather small sum of money compared to the £70bn odd deficit they have got to get rid of. But I guess every little helps." | "I don't know whether that is the best thing to do, it's a rather small sum of money compared to the £70bn odd deficit they have got to get rid of. But I guess every little helps." |
| Mr Balls was in a cuts controversy of a different kind on Sunday, when he accidentally elbowed a journalist in the eye during a charity football match. | Mr Balls was in a cuts controversy of a different kind on Sunday, when he accidentally elbowed a journalist in the eye during a charity football match. |
| Does your family receive child benefit? What is your reaction to Labour's proposals? Email your response to haveyoursay@bbc.co.uk | Does your family receive child benefit? What is your reaction to Labour's proposals? Email your response to haveyoursay@bbc.co.uk |