Benefits

Benefitting the Tories

From our UK edition

The longer the row over the benefit cap goes on, the better it will be for the Tories. The cap chimes with the public’s sense of fairness. Polls show massive public support for capping benefits at £26,000 a year for non-working households (the cap won’t apply to the disabled or war widows), and if Labour oppose it, they’ll be handing the Tories a stick with which to beat them. Chris Grayling has already declared that tonight’s vote in the Lords is ‘a test of Ed Miliband’s leadership’. Those who argue that the cap isn’t fair because it will force people to move out of their house are missing the point.

Labour’s confusion is the Tories’ advantage

From our UK edition

Today’s polls make grim reading for Labour. Even three months ago senior Labour or Tory people wouldn’t have thought that the Tories would be five points ahead at this point in the cycle. Part of Labour’s problem is that its positions require too much explanation. As one Number 10 source jokes, ‘Ed Miliband can do a Rubik's cube in less time than it takes him to explain his position on the cuts.’ A prime example of these overly complicated policy positions is Labour’s approach to the benefit cap. The leadership says that it is in favour of a cap in principle but against this one in practice.

What today’s immigration numbers tell us

From our UK edition

During the leaders debates before the last general election, David Cameron declared that he wanted to make immigration a non-issue and he would go about it by reducing immigration numbers from hundreds of thousands a year to tens of thousands a year. He hasn’t succeeded in the second objective — more than half a million people arrived here in 2010, only 30 per cent of whom were from the EU — and he most certainly hasn’t succeeded in the first. At least if the reaction to today’s revelations about immigrants on benefits is anything to go by.

Simon Hughes speaks out against the benefit cap

From our UK edition

In the Cameroon effort to redefine the politics of fairness, the benefit cap of £26,000 a year is key. When George Osborne announced it in his 2010 conference speech, he explained it – rightly – as a matter of fairness that ‘no family on out-of-work benefits will get more than the average family gets by going out to work’.   The Tories were also aware of just how potent a wedge issue it would be. If Labour opposed the cap, they would be in favour of some households in which no one is working receiving more from the state than the average salary people achieve by working. This is, to put it mildly, not a position that would go down well on the doorsteps.   But the cap has hit a snag: Simon Hughes.

IDS must stay the course on welfare reform

From our UK edition

Welfare wars are erupting again, with Iain Duncan Smith’s bill amended in the Lords and more showdowns ahead. Number 10 has been completely robust, threatening to use rarely-invoked powers to overrule the Lords. In my Telegraph column today, I say why it’s so important that David Cameron does not go wobbly – as his predecessors did.   Tony Blair understood the need for radical welfare reform, especially when his idol Bill Clinton introduced it in America. Listening to his speeches in the mid-90s is heartbreaking: he had precisely the right idea, but lacked the determination to implement it.

Cameron hints at child benefit taper

From our UK edition

David Cameron’s comments to The House magazine on child benefit are causing quite a stir this morning. The Telegraph splashes on the PM’s line that ‘Some people say that’s the unfairness of it, that you lose the child benefit if you have a higher rate taxpayer in the family,’ he said. ‘Two people below the level keep the benefit. So, there’s a threshold, a cliff-edge issue.’ ‘We always said we would look at the way it’s implemented and that remains the case, but I don’t want to impinge on the Chancellor’s Budget.’ I suspect that what Cameron means by this is that they are looking at a taper.

Byrne offers ‘something for something’ — but what does it mean?

From our UK edition

What's this? Seems like Liam Byrne has emerged from his policy review with an idea. He calls it, in an article for the Guardian today, ‘something for something’: ‘…“something for something” means reward for those who are desperately trying to do the right thing, saving for the future and trying to build a stable, secure home. Right now, these families are offered too little reward and incentive — in social housing and long-term savings — for the kind of behaviour that is the bedrock of a decent society.’ In truth, it's not a new or surprising idea at all.

We cannot forget the riots, nor ignore their causes

From our UK edition

If I’d said that an MP had accused the Church of England of being too obsessed with gay marriage and women priests — and not worried enough about how God can keep young boys out of harm’s way — you’d probably imagine that a Tory had gone nuts. But this is the David Lammy, Labour MP for Tottenham, who has gave an interview to our Books Blog. In it, he elaborates on the theme of his new book: that his colleagues are so keen to help single mothers that they’ve lost sight of what really helps working class boys. Amongst the contributing factors, he mentions two things that may cast him out as a heretic in Labour’s secular religion: fathers, and God.   Lammy’s book, Out of the Ashes, was released yesterday. On Monday.

Cameron: ‘We have to end the sicknote culture’

From our UK edition

The Prime Minister has backed the proposal for a new independent service to sign workers' long-term sicknotes, instead of GPs. The plan, which Pete wrote about at the weekend, is aimed at ensuring that people on sick pay or sickness-related benefits really are too ill to work. Cameron describes how it would work in today's Mail: 'The independent service would be free to all employers from four weeks of sickness absence, with the option for employers to pay for it earlier. It would provide an in-depth assessment of an individual's physical and mental function. So if they're unable to work, they’ll be helped – but if they are fit, they'll be identified and supported back into the workplace.

Assessing the sick

From our UK edition

Should GPs determine whether people on long-term sick leave are too ill to work? Perhaps not, according to the draft copy of a government-commissioned review into sickness absence. It proposes setting up a new, separate and independent body to assess those on long-term sick leave, on the grounds that doctors have no incentive — nor, perhaps, the specific knowledge — to prod and coax them back towards employment. The new service, it is said, would advise sick leavers, and their employers, about just what they can and can't manage. If the government does introduce this, it will be another sign of their intent to untangle the problems with sickness benefits.

Benefits won’t rise in line with September’s inflation figures

From our UK edition

Jill Sherman, the Whitehall editor of The Times, reports tomorrow that the government will not raise benefits in line with September’s inflation figures as normally happens. However, there’ll be no freeze in benefits. Instead, they’ll rise in line with a six month inflation average which stands at 4.5 percent rather than September’s 5.2 percent figure. This move will save the government a little less than a billion pounds as pensions will be exempt from the move. I suspect that there’ll be objections to this shift from various quarters. But it is worth remembering that 4.5 percent is far larger than the pay rises most private sector workers will see while there’s a wage freeze in the public sector.

Miliband finds his niche

From our UK edition

I spent this morning with Ed Miliband on a trip to a factory in Sunderland. Miliband was visiting the Liebherr plant there, which manufactures cranes. The centerpiece of the visit was a Q&A with the workforce. Now, a factory in the North East is not the toughest venue for a Labour leader to play. But Miliband appeared far more comfortable in this setting than he does when giving a traditional speech from behind a podium.   Unlike Miliband’s Q&A at Labour conference, the questions were not softballs or traditional left-wing fare. One set of three questions were: why don’t we close the borders, bring back national service and do more to clamp down on benefit cheats.

Will IDS’s reforms get stuck in Whitehall’s digital mire?

From our UK edition

"7m caught in tax blunder," trumpets the cover of this morning's Daily Mail. "After a series of errors, six million will get an average £400 rebate, while a million face demand to pay £600." It's a good story — but it's also sadly, wearily familiar. Rewind the tape to last November, and the Telegraph was running with the headline, "New HMRC tax blunder means thousands face demands to repay". Last September, the Guardian had an article about the 10 million people who might be owed rebates. Last August … oh, you get the point. Nary a month has passed without some tale of how HMRC has screwed up once again.

Trust in bricks and mortar

From our UK edition

If George Osborne is serious about growth, a relatively easy decision awaits him: to stimulate the economy by spending more on housebuilding. David Cameron knows there's a problem, and during Tory conference announced a "Tory Housing Revolution" to tackle the failing housing market, and plans to boost Right to Buy and release more land for house building that will deliver 200,000 new homes and create 400,000 jobs. All welcome, suggesting the government has recognised the role that housing can play in creating growth. But if the Treasury is looking to stimulate demand in the short term, there's still much more that could be done. Investment in housing can happen fast.

The poverty of the poverty measure

From our UK edition

‘400,000 children will fall into relative poverty by 2015, says IFS’ we read on The Guardian’s front page today — yes, one of the most pernicious ideas of recent years is back. It’s the definition of ‘poverty’ as being figures on a spreadsheet, households deemed to fall beneath an arbitrary threshold. It’s almost entirely meaningless, and diverts energy and resources away from a real fight against poverty. I really do believe that, as ideas go, this one has damaged Britain more than almost any other over the last two decades — and it’s high time it was confronted.

The Winter Fuel Allowance is indefensible

From our UK edition

Freed from the shackles of elected office, Steve Norris remains an electrifying speaker. He is also refreshingly honest. So, when I met the 66-year-old former mayoral candidate at a Tory conference fringe on the future of London, he was only too happy to admit how spent his Winter Fuel Allowance: "I'm amazed by the Chancellor's annual gift. I spend it on Claret," he said. In fact, he said that when paid to the wealthy, the allowance is "a complete waste of money" and "a bribe to older voters". I mention this only because the Allowance was referred to again in a different context this week: during David Cameron's own address.

Any questions for IDS?

From our UK edition

At 6pm this evening, I'm interviewing Iain Duncan Smith at a Conservative Party conference fringe meeting. He is fighting a war on at least three fronts: the welfare-to-work programme, the creation of his Universal Credit (ie, rewriting the benefits system), and producing a government response to the riots and the conditions behind them. I may put questions to him from CoffeeHousers, so if you have any please leave them below. IDS is surprisingly candid for a Cabinet member, perhaps because he wants this to be his last job in government. He isn't watching his words, worried that he'll say something to damage his promotion chances.

Miliband woos the strivers

From our UK edition

Finally, a good idea from the Labour conference. In his speech tomorrow, Ed Miliband will say he'd give workers priority over the jobless for social housing. This is the dividing line he was reluctant to draw when asked to by Andrew Marr on Sunday. It's a clever move, and one that recognises the resentment felt by the strivers against the welfare dependent. He will say: "The hard truth is that we still have a system where reward for work is not high enough, where benefits are too easy to come by for those who abuse the system." So councils dolling out housing should not only take need into account, but whether applicants "are working, whether they look after the property and are good neighbours." I can't see why IDS would oppose this, and perhaps consensus can be reached.

Welfare worries

From our UK edition

Away from Liverpool, the big stories of the day are the markets’ reaction to the putative Eurozone deal, which has been mixed so far, and the Telegraph’s splash about the progress of the Universal Credit, the coalition’s flagship welfare reform. The scheme is designed to simplify the benefits system and save circa £5 billion a year by reducing the scope for claims to be duplicated and errors made; it is a crucial cog in the coalition’s plan to make work pay. James Kirkup reports that the Treasury has apparently put the credit at the top of its “to watch” list of government projects that are at risk of running over schedule, over budget or failing to be launched at all.

Cameron’s well-schooled argument

From our UK edition

When Michael Howard offered David Cameron the pick of the jobs in the shadow Cabinet after the 2005 election, Cameron chose education. Howard was disappointed that Cameron hadn't opted to shadow Gordon Brown but Cameron argued that education was the most important portfolio. A sense of that commitment was on display today in his speech on education, delivered at one of the new free schools that have opened this term. His defence of the coalition’s plans to make it easier to sack bad teachers summed up its refreshing radicalism. He simply said, "If it's a choice between making sure our children get the highest quality teaching or some teachers changing career... I know what I choose.