- 39 updates
A second Liberal Democrat MP, John Leech, said he would join former children's minister Sarah Teather in defying the party whip and vote against the change.He said:
Robert Joyce, Senior Research Economist at the Institute for Fiscal Studies (IFS) has told ITV News that the 1% benefits cut will affect both those who work and those who do not.
He added that although there will be a greater proportion of people who do not work affected by the cap, the fact that the cuts will hit both those in and those out of work will mean that, "the impact on people's incentive to move in to work will be somewhat mixed."
And that for some people the cuts will mean they are better off out of work.
In an email to Conservative supporters Iain Duncan Smith has accused Labour of having no plan to reduce the deficit:
Nearly 60% of working people believe changes to the welfare system will plunge people in to poverty and make life harder for their own families, with just 17% believing the changes would make the system fairer.
The findings involving over 6,000 of respondents from an independent survey for Unite showed that 47% are in the dark over how the government's cuts will hit them.
Unite has accused the government of attempting to divide working and non-working people by demonising the unemployed.
- The independent survey, conducted for Unite by Mass1, a social research company, has tracked around 350,000 people, mainly members of Unite, since January 2011
Landlords have warned that a benefits cap is likely to increase homelessness.
The Residential Landlords’ Association (RLA) said that, "a cap would be unsustainable, leading to many tenants finding themselves unable to pay their rents and thereby facing eviction."
Alan Ward, chairman of the (RLA) said, “Almost a quarter of tenants in the private rented sector are in receipt of housing benefits, including some that are in work.
"Whilst landlords have kept rent increases well below inflation this still wouldn’t be sufficient for benefit claimants facing a one per cent cap on the increase in their benefits."
Reaction to the proposed benefits cap has been mixed on Twitter, with some claiming that benefit fraud is the problem, but with others citing the public sector pay freeze acting as double hit for some:
What do you think of the proposed benefit cap? Tweet us @itvnews.
Work and Pensions Secretary Iain Duncan Smith has told ITV News that the proposed benefits cap is about "fairness."
He said, "we're doing what is necessary to get the deficit sorted and fairness to people in work, see their salaries not rise by anything like that what people on benefit have."
The Children's Society yesterday published a joint letter from the Chief Executives of several leading charities warning the government of the impact of a 1% benefits cap.
The letter claims that a result of the 1% cap:
- A single-parent primary school teacher or a nurse with two children stands to lose £424 a year by 2015.
- An army second lieutenant with three children could lose £552 a year.
Labour leader Ed Miliband has said that; "the Labour party is very united. We're going to be voting for real welfare reform to put people back to work.
"But we're going to be voting against a tax on strivers, a tax that is going to hitting people that are working hard, who are getting up early and who are staying up late; who are getting help in work at the moment and are going to see it reduced as a result of this bill."
Latest ITV News reports
MPs have voted in favour of a Government measure to cap benefits rises. The Work Secretary says it will save £5bn from the welfare bill.
The Department for Work and Pensions has calculated the savings that the exchequer could expect if the benefit cap passes this evening.