Rebels fail to derail welfare reform (From The Northern Echo)

Rebels fail to derail welfare reform

10:26am Thursday 2nd February 2012 in News By Rob Merrick

Prime Minister David Cameron has defended the Government's welfare forms as 'right and fair'

DAVID CAMERON last night used ancient rules to ram through controversial welfare cuts – including a £26,000 benefits cap – and overcome House of Lords protests.

The device of “financial privilege” was invoked to prevent the Lords further delaying the Welfare Reform Bill, ensuring it becomes law this month.

The move came as MPs overturned no fewer than seven amendments made by peers, reinstating caps on financial help for cancer patients and the disabled.

Ian Swales, the Redcar MP, was among a small number of Liberal Democrat rebels on two amendments – but the Government won all the votes, with majorities of at least 42.

Tories were gleeful after Labour voted against the benefits cap, believing it to be an own goal that will haunt Ed Miliband at the next election.

Labour argued instead for a local cap, adjusted for housing costs, which – as The Northern Echo revealed – is likely to be harsher in low-cost areas such as the North-East. But Lib Dems refused to support it.

Earlier, the Prime Minister vowed to “fight all the way” for a benefit cap at £26,000 – the average household, post-tax income – saying: “It would restore fairness in our country.”

The seven Lords amendments overturned mean the Bill will:

• Include child benefit in the £26,000 household benefit cap;
• Cut housing benefit for social housing tenants with one spare room;
• Impose a 12-month limit on claiming contributory employment and support allowance (ESA), before meanstesting – instead of 24 months;
• Include cancer patients in the meanstesting of ESA;
• Remove ESA from young disabled people if they have partners in work;
• Charge single parents for using the Child Support Agency (CSA);
• Cut disability living allowance by up to £1,400 a year for about 100,000 children.

Mr Swales was among eight Lib Dems who rebelled on the amendment on time-limiting – and means-testing – sickness benefits, attempting to prevent the change starting at 12 months.

He also voted against his Government on the removal of ESA from young disabled people if their partners were in jobs above an income threshold.

The Government offered minor concessions, including giving families affected by the £26,000 cap nine months’ “grace period” to find a job or move house.

Town halls were promised a £130m fund to ensure families were not forced to move when children faced exams, for example, and the poorest single parents will be exempt from CSA fees.