Since the financial crisis hit, most benefit levels have risen twice as fast as average earnings. Next week, M.P.s will vote on the final stages of Welfare Benefits Up-Rating Bill, which limits the amount that working-age benefits can rise.
It is part of the Government’s plans for a welfare system that is fair to the working people who pay for it.
- • Uprating benefits by 1 per cent. For the next three years, the Government will increase most working-age benefits by 1 per cent to keep them more in line with salary increases.
- • Protecting those with the greatest need. Disability and Carers benefits will be protected.
- • Cutting taxes for working people. 24 million taxpayers have seen their income tax cut and 2 million of the lowest paid have been taken out of tax altogether – with more tax cuts to come. People working full-time on the minimum wage will have seen their income tax bill cut in half.
Commenting, Greg Hands M.P. said: “Labour want to cap public sector pay but let benefits rise with inflation – that isn’t fair. They have forgotten that it is the people who work hard and pay tax that support our welfare system.
“The Government is cutting tax and limiting increases in benefits, which is absolutely the right thing to do.”