22/01/2013

MPs Back Proposed 1% Benefit Cap

A controversial plan to cap working-age benefit rises at 1% has passed through the House of Commons.

Labour MPs have failed to block the Welfare Benefits Up-rating Bill, which will cap the benefit rises until 2016, passed by 305 votes to 246.

Iain Duncan Smith, the Work and Pensions Secretary, said spending had to be brought "back under control" or the "poorest in society will fare the worst", but Labour’s Liam Byrne said "compassionate Conservatism" was no longer believable.

Following Monday’s vote the bill has now completed its main Commons stages and will proceed to the House of Lords where peers will debate and vote on it.

Should the Lords make any amendments it will then return to the Commons for MPs to consider the proposed changes – both the Lords and Commons must agree on the wording of the bill for it to become law.

Historically benefits have risen in line with inflation and, without any change, would have been due to go up by 2.2% in April.

(H)

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