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MPs vote for 1% benefits cap

MPs have voted in favour of a proposed 1 per cent cap on raising benefits by a majority of 56. Ministers say the cap is needed because it is unfair that state handouts have been rising twice as fast as wages during recent years of austerity.

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Soldiers, nurses and teachers 'would lose money with benefits cap'

On Sunday the Observer reported that half a million soldiers, nurses and teachers would feel the impact of the benefit cap.

The paper claimed that up to 400,000 soldiers, 300,000 nurses and 150,000 primary and nursery school teachers would lose cash according to a report by the Children's society.

Soldiers could lose out under the benefits cap Credit: Andrew Milligan/PA Wire

The paper said; "The coalition's welfare up-rating bill caps a whole range of benefits at 1% until 2015, including child benefit, tax credits, statutory maternity pay and jobseeker's allowance.

"By 2015 a second lieutenant in the army who has three children, who earns £470 per week and whose wife does not work will lose £552 a year; a lone-parent nurse with two children, earning the profession's average of £530 a week, will lose £424 a year;

"and a couple with two children where the sole earner is a primary school teacher, earning £600 a week, will lose £424."

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