Vote due on 1% benefits cap

clock

Members of parliament are due to vote on Tuesday on controversial government plans to place a 1% cap on annual rises in some benefits and tax credits for three years.

The coalition argues benefits should not be rising at a faster rate than inflation, the measure by which they have been historically linked. Benefits increased by more than 5% in 2012-3.

The government wants to to cap increases in jobseeker's allowance, employment and support allowance, income support and elements of housing benefit at 1% until 2016.

Maternity allowance, sick pay, maternity pay and paternity pay as well as the couple and lone parent elements of the working tax credit and the child element of the child tax credit, will also be affected.

The coalition is making the changes - which, if approved, will come into effect in April - as part of its plans to cut the deficit.

But Labour claims they will result in cuts in support for millions of working people.

More on Marketing

Georgia d'Esterre named head of marketing at the West Brom

Georgia d'Esterre named head of marketing at the West Brom

Joins from National Friendly

Jaskeet Briah
clock 11 August 2023 • 1 min read

Financial Services Forum: Protection in a post-pandemic era

Watch the full webinar

COVER
clock 20 November 2020 • 1 min read

COVER editor Adam Saville to chair protection panel discussion

On Thursday 19 November

COVER
clock 17 November 2020 • 1 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read