Cameron says benefit reforms put ‘fairness back’
David Cameron claims government changes to benefits are “restoring the fairness” in Britain, while Labour wants to “strengthen the old principle of contribution”, calling Tory changes “hopeless”.
Writing in the Sun on Sunday, Prime Minister David Cameron said it was “crazy” people could earn more money by claiming benefits than by working.
He said: “We are putting fairness back at the heart of Britain. We are building a country for those who work hard and want to get on. And we are saying to each and every hardworking person in our country: we are on your side.
“This is a government for hardworking people: and that’s the way it will stay.”
The reforms, many of which came into effect this week, include a one per cent cap on working-age benefits and tax credit rises for three years.
Around 660,000 social housing tenants deemed to have a spare room will lose an average £14 a week in what critics have dubbed a “bedroom tax” while trials are due to begin this month in four London boroughs of a £500-a-week cap on household benefits.
Range of cuts come into force
On Saturday, the personal allowance – which is the amount that most people can earn before they pay income tax – rose to £9,440.
And the top rate of income tax was also reduced from 50p in the pound to 45p for people with incomes of more than £150,000.
Labour claims the changes have divided people, citing the recent linking of Mick Philpott, who along with his wife Mairead, were jailed for the manslaughter of their six children, with their dependency on state benefits.
Shadow Work and Pensions Secretary Liam Byrne, writing in the Observer, said: “Instead of seeking to divide people, we want to ensure everyone plays their part so we can rebuild Britain together.
“There are lots of people right now who feel they pay an awful lot more in than they ever get back.” said Mr Byrne.
“That should change. We should start by letting councils give priority in social housing allocations to those who work and contribute to their community.”
He added that Labour would “make work pay” by reintroducing a 10p tax rate and supporting employers who pay the minimum wage.
It would also ensure that no adult will be able to live on the dole for more than two years, and no young person for more than a year.