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02/01/2013
MPs To Debate Benefit Caps
The work and pensions secretary, Iain Duncan Smith, has said it is unfair for benefits to rise at a faster rate than wages.
Ahead of a key Commons vote on capping benefits figures highlighted by Duncan Smith show jobless benefits rose 20% in the last five years, compared with an average 12% rise in private sector pay.
MPs are due to debate legislation on Tuesday which is designed to break the link between benefit rises and inflation.
Instead there will be a three-year cap of 1% - which is below the expected rise in the cost of living - on most working-age benefits and tax credits for three years from 2013/14.
Mr Duncan Smith said that working families had been tightening their belts after years of pay restraint while watching benefits rise - and that, he said, was not fair.
"The welfare state under Labour effectively trapped thousands of families into dependency as it made no sense to give up the certainty of a benefit payment in order to go back to work.
"This government is restoring fairness to the system and universal credit will ensure it always pays to be in work."
(H/GK)
Ahead of a key Commons vote on capping benefits figures highlighted by Duncan Smith show jobless benefits rose 20% in the last five years, compared with an average 12% rise in private sector pay.
MPs are due to debate legislation on Tuesday which is designed to break the link between benefit rises and inflation.
Instead there will be a three-year cap of 1% - which is below the expected rise in the cost of living - on most working-age benefits and tax credits for three years from 2013/14.
Mr Duncan Smith said that working families had been tightening their belts after years of pay restraint while watching benefits rise - and that, he said, was not fair.
"The welfare state under Labour effectively trapped thousands of families into dependency as it made no sense to give up the certainty of a benefit payment in order to go back to work.
"This government is restoring fairness to the system and universal credit will ensure it always pays to be in work."
(H/GK)
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