Govt to press ahead with welfare plans despite Lords defeat

Author: IFAonline
IFAonline | 24 Jan 2012 | 07:40

Categories: Tax Planning| Better Business

Topics: state benefits

child-benefit

The government will push ahead "in full" with plans to cap welfare payments for families despite a defeat in the House of Lords.

On Monday evening, peers voted in favour of excluding child benefit from a proposed household benefits cap of £26,000 a year.

Critics, including former Liberal Democrat leader Lord Ashdown, argued that imposing the same cap on all families would penalise children.

Ministers said they were "disappointed" with the result but intended to push through their plans "in full".

Work and Pensions Secretary Iain Duncan Smith claims the cap on out-of-work benefits would save about £600m towards deficit reduction.

But Liberal Democrat, Labour and crossbench peers allied to back a Church of England bishop's amendment by 252 votes to 237 that child benefit should not be included in the cap.

A spokesperson for the Department for Work and Pensions said: "We are very disappointed by this decision and it clearly flies in the face of public opinion. There has to be a limit on the amount of money benefit claimants can receive.

"We think that limit is set at a fair rate of £26,000 - the equivalent to someone earning £35,000 before tax, a salary that many working families would be happy to receive."

 

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Benefits

It doesn't make a difference whether CB is included or not. There are no restrictions to what CB can be spent on so if parents want to spend it on themselves they will. I don't know many people that EARN 26k so why on earth should people who don't want to work get 26k? If you are ill or cannot work fair enough but if you are lazy or taking advantage of the system its not on. We could have an amazing country but if we carry on paying out more than is being paid it this country will go bust.

Posted by: R Whitehead

24 Jan 2012 | 08:18
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Common Sense

It's about time common sense prevailed. Most tax payers are opposed to the 'unwilling to work' parasites milking the flawed benefit system. Clearly the Lords have too much income/expenses to understand the difficult times for working people on lower incomes than those on benefits

Posted by: LesCar

24 Jan 2012 | 10:42
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Bone Idle

We come accross people on benefits of all kinds in our daily work. Some of them need support but very many of them are lazy and will not motivate themselves to make any effort whilst they are getting easy money from the state. The government are right in this clamp-down which is long overdue and which has got out of hand thanks to Labours policy to "keep familes from poorer backgrounds out of poverty" (you can still hear Gorden Brown saying it now - after so many times when he was in power). The government realise that "poor" is sometimes a result of having a bad attitude, being idle and preferring to be incapable. Why should that get a reward? Reap what you sew and stop nicking somebody elses crop.

Posted by: dwinsal

24 Jan 2012 | 11:07
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This Gravy train should stop now

Its all very well helping the needy but what about them helping themselves,its called getting a job, I have no hesitation in agreeing to my taxes being used to help genuine people who are suffering hardship through no fault of there own, but object strongly when my tax money is used to support irresponsible and lazy non patriotic people who are bleed this country dry, I notice the BBC are still showing there same old bias, like the example of the woman on benefit last night's news with 5 children, did she ever consider how she would support them,however its not the childrens fault, We're "broke" and can't help our own Seniors, Veterans, Orphans, Are you aware of the following?The British Government provides the following financial assistance: - BRITISH OLD AGED PENSIONER Weekly allowance £104. BRITISH OLD AGED PENSIONER Weekly Spouse allowance £25 BRITISH OLD AGED PENSIONER Additional weekly hardship allowance £0 BRITISH OLD AGED PENSIONER TOTAL YEARLY BENEFIT £6,000 The average pensioner has paid taxes and contributed to the growth of this country for the last 40 to 60 years, Sad isn't it To sum up we pay nearly 5 times what the average pensioner receives to people that have never paid tax or contributed anything to the BRITISH economy and are never likely to OH BRITAIN, where did we go wrong?

Posted by: Geoff

24 Jan 2012 | 11:53
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