Benefits cap and charges for separated parents WILL be forced through, vows Iain Duncan Smith

By
Tim Shipman

Last updated at 12:38 AM on 30th January 2012


Iain Duncan Smith vowed to push ahead with a cap benefits and charges to use the Child Support Agency

Defiant: Iain Duncan Smith vowed to push ahead with a cap benefits and charges to use the Child Support Agency

Benefit claimants could get paid less outside London Iain Duncan Smith warned yesterday if Labour persists with its opposition to a cap on state handouts.

The Work and Pensions Secretary threatened to introduce regional variations in benefits if the government is blocked from limiting the maximum paid to each family to £26,000 a year.

Mr Duncan Smith vowed to press on with the coalition’s plans, defending them as ‘overwhelmingly popular’ and said the cap would end the ‘ridiculous’ situation where some families get more in welfare payments than the average earnings of a working family.

Labour peers helped inflict six defeats on the government’s welfare bill in the House of Lords despite claiming they support a cap.

The opposition is calling for the cap to be higher in London than in other parts of the country to reflect higher cost of housing.

But Mr Duncan Smith said the logic of that position would be to look at regional variations in benefits themselves, leading to people in the North of England being paid less than those in the South East.

‘I’m not going for a regional cap but I do say this to the Labour party – If they really want a regional cap then that must mean they want regionalising of benefits as well, because you can’t have one without the other.

‘I’m happy to have a debate about that with them, if that’s where they want to go but you can’t detach one and just say “We’d like a bit of this, but not the other”, because that would make the whole system a chaotic mess.’

Debate: The Rt Reverend John Packer delivers his speech to the House of Lords ahead of the vote which saw the bishops, Labour and Liberal Democrat peers vote for an amendment to the motion

Debate: The Rt Reverend John Packer delivers his speech to the House of Lords ahead of the vote which saw the bishops, Labour and Liberal Democrat peers vote for an amendment to the motion

Speech: The Bishop of Ripon and Leeds, the Rt Rev John Packer, were widely criticized for opposing the move

Speech: The Bishop of Ripon and Leeds, the Rt Rev John Packer, were widely criticized for opposing the move

Chancellor George Osborne is also
pushing the idea of regional pay rates in the public sector – a move
that has enraged the unions.

The DWP will attempt to reverse the defeats in the Lords when the bill returns to the Commons this week.

David Cameron meets President Hamid Karzai of Afghanistan at Chequers today

David Cameron meets President Hamid Karzai of Afghanistan at Chequers today

Shadow Work and Pensions Secretary Liam Byrne said Labour would persist with the idea of a regional benefits cap.

‘What we are saying to the government is very simple – you need to think
this through and give us a cap that isn’t going to backfire but is
actually going to work in practice.

‘The problem with the government’s proposal, as everybody knows, is that
Housing Benefit costs which make up most of the benefits people get,
are much, much higher in London so what you would get in Housing Benefit
in central London would be very, very different to what you would get
in Birmingham for example.’

Mr Byrne called for the government to set up at independent commission
like the Low Pay Commission, ‘to look at how you get a local benefit cap
in place that actually works in practice’.

Mr Duncan Smith also vowed to reverse last week’s defeat in the House of
Lords over plans to charge single parents for applying to the Child
Support Agency, saying ‘we’re not asking for much’.

The Work and Pensions Secretary said the current system was ‘completely
dysfunctional’ and that charging would persuade parents to settle their
differences more quickly themselves. He added it was ‘very expensive’,
did not work and ‘actually helps divide parents from each other’.

Mr Duncan Smith added: ‘We also have to have fairness to the taxpayer
who’s paying huge sums of money to run this badly, we want to say to
them, we don’t need to take quite so much off you to actually do this
system well.’

Here’s what other readers have said. Why not add your thoughts,
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The comments below have not been moderated.

As other MP’s report that frantic negotiations are going on, to try and get it through, by amending it, this doesn’t ring true.
I think someone should also sit Duncan Smith down and explain, yet again, that it’s private landlords getting the bulk of this money – not the tenants.
Cap rents, particularly in London, and the problem would be solved.

Just so the working people of this country know, there are quite a few unemployed people agreeing with these moves. I’m an unemployed student (who has applied for over 2000 jobs since 2009) and my boyfriend has been working and laid off twice in a year. We are appalled at how much some people are given to live on, even more so now that we are both living on my student loan because the job centre has decided that because I get a couple of pound over some threshold, he’s entitled to nothing. My loan is a couple of hundred pound a month. The amount these people get, and more importantly, the fact that we appear to be being penalised for not having children (like virtually everyone I know) makes me sick to the stomach.

I hope this definitely happens!! I hate the fact we work hard all week and still only just manage to survive yet people on benefits live luxury lives. I want my child to have everything it needs but paid for by us…

OK but still not enough. whatever the size of your family you should get no more than minimum wage when on benefits, AND as much as possibl should be in vouchers not cash, otherwise we immediately damage or destroy the incentive to return to work. A person should ALWAYS be able to be financially better off working than on benefits, however humble the job, the fact that so many are not (and that a lot of people who have been allowed to just wander in here are better off on benefits in this country than either on benefits or working in their own countries) is the root of pretty much all the problems in this country. cut benefits and use the savings to support employers to create jobs and increase wages rather than supporting non-working families to sit around. raise the minimum wage even a little- sub-survival-level minimum wage + tax credits dependency is another trap that IDS should look at fixing. Give the working people of this country back the dignity that Blair co stole from us!

He is going to need to get us out of the EU then. Because if the Law states that a family needs X amount to live on, and housing benefit states that you can claim up to Y in rent, (which his Bill still does) but hey, you can’t have X+Y, then the EU Court of Human Rights are going to think that’s discrimination and certainly an offence against clause 8. And when ‘middle England’ landlords aren’t being paid Y because ‘I don’t get it all myself’ are they going to be happy? I adore IDS but perhaps this Bill is already over-compromised? It’s brilliant in principle, but I don’t think the practicalities are there. The lion share of benefits go in housing costs and the housing market should be tackled by IDS and the government directly, instead of leaving the poor to take the brunt.

It’s not just the people on benefits ripping the government off its the landlords. The benefits people get urgently needs addressing but capping is not going to solve the problem. In my opinion two thing need to happen.
1.If landlords a charging extortionist rent the local council should put a compulsory purchase order on the ones that come up to housing standards, the ones that don’t demolish or make the landlords bring them up to standard. If the landlord wants to retain the property the rent most be reduced.
2.New claimants for child benefit should be told they can only claim for one child

Some are questioning the amount of 26.000 and rightly so…..its propaganda. unless it means someome on benefits with multiple wives,children and massive houses…otherwise it doesnt add up its just not possible….will the reforms go through ..yes eventually becauses spoilt A—-s always get their own way even when they lie like theres no tomorrow…think back to when the two C,S got in….

Let’s get one thing straight, ian duncan smith knows about poverty and is not in the business of punishing the poorest in our society, rest assured ids knows what he is doing, so let him get on with his task.He will take no notice of the more extreme comments made by some and do what is right for the people who need! and not for those who do not need.

What chance do you have when there are women in this country who are not allowed to work and are there to produce children and look after the husband. They have a huge family and the taxpayer has to fork out welfare to look after them.

I have spent three years trying to get my ex to pay maintenance for the kids eventually I had to turn to the CSA for help to sort it out. So why is it when eventually this will get sorted would the government charge me for using this service.. Shouldn’t they be charging the other party who is not willing to co-operate and pay his way.. I am absolutely appalled at this ruling if it goes ahead and it is not fair at al..

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