Labour and Welfare
The vote on the welfare cap has led to accusations that Labour is propping up the Tory’s plans to
hit the poorest hardest. Of course, the Tories will portray the cap as being tough on welfare. But
they don’t explain why they have continually missed their own targets on welfare spending since
they came into power – and the principal reason is that more people in work have been put into
poverty as a result of their policies – with over a million workers now on zero hours contracts.
The Welfare cap doesn’t cover all expenditure –state pensions, JSA and related housing costs are
excluded but it does include housing benefit for those in work which has increased substantially as
a result of more people having to survive on part time unsecure work and the failure of both UK
and Scottish Governments to build houses.
If the welfare cap is found to be breached in one or more years over the five year cycle in which it
applies there will be a debate in Parliament on a votable motion giving an assessment of the
reasons for the breach, and setting out the action to be taken, including if the Government believes
that the breach is considered justified.
Labour isn’t afraid of being held accountable for how it uses money raised from taxes but we see
the test as how well our policies are working in taking people OUT of poverty not about taking
money away from those most in need.
That’s why we will:
• Scrap the Bedroom tax
• Increase wages by strengthening the National Minimum Wage and encouraging employers to
pay a Living Wage through make work pay contracts
• Build an additional 200,000 homes a year by the end of the next Parliament to help bring down
the spiralling rents which are adding to housing benefit bills
• Reform the private rented sector to provide a fairer deal for tenants
The vote on the welfare cap has led to accusations that Labour is propping up the Tory’s plans to
hit the poorest hardest. Of course, the Tories will portray the cap as being tough on welfare. But
they don’t explain why they have continually missed their own targets on welfare spending since
they came into power – and the principal reason is that more people in work have been put into
poverty as a result of their policies – with over a million workers now on zero hours contracts.
The Welfare cap doesn’t cover all expenditure –state pensions, JSA and related housing costs are
excluded but it does include housing benefit for those in work which has increased substantially as
a result of more people having to survive on part time unsecure work and the failure of both UK
and Scottish Governments to build houses.
If the welfare cap is found to be breached in one or more years over the five year cycle in which it
applies there will be a debate in Parliament on a votable motion giving an assessment of the
reasons for the breach, and setting out the action to be taken, including if the Government believes
that the breach is considered justified.
Labour isn’t afraid of being held accountable for how it uses money raised from taxes but we see
the test as how well our policies are working in taking people OUT of poverty not about taking
money away from those most in need.
That’s why we will:
• Scrap the Bedroom tax
• Increase wages by strengthening the National Minimum Wage and encouraging employers to
pay a Living Wage through make work pay contracts
• Build an additional 200,000 homes a year by the end of the next Parliament to help bring down
the spiralling rents which are adding to housing benefit bills
• Reform the private rented sector to provide a fairer deal for tenants