Labour considering regional state benefits caps

clock

The Labour party is considering a regional benefits cap alongside its possible cap on the basic state pension, shadow chancellor Ed Balls has announced.

However, the party added this move would not mean more differing benefit rates in different parts of the country than is currently the case.

A statement said: "Housing benefit by definition varies with housing costs at the moment - and our proposal is simply that an independent Low Pay Commission style body would recommend how to adjust the cap in London and the rest of the country based on housing costs in a similar way."

The Commission would suggest how the cap in different regions - which might mean that while the £26,000 cap imposed by the government would remain in London and the South East, it could be reduced still further to reflect different housing costs in northern regions and in the south west.

State pensions will face a cap under Labour should the party win the next election, shadow chancellor Ed Balls has said.

In an interview with the BBC, Balls said that Labour was committed to maintaining the value of the state pension but social security expenditure needed to be looked at "across the piece".

He said that the party was likely to factor pensions into its calculations for a three-year cap from 2015-16.

More on Regulation

More work needed to tackle UK 'inflationary pressure' as BoE members warn of further market upheaval

More work needed to tackle UK 'inflationary pressure' as BoE members warn of further market upheaval

Treasury Committee hearing

Sorin Dojan
clock 06 March 2025 • 2 min read
ABI names Phoenix Group CEO as president

ABI names Phoenix Group CEO as president

Succeeds Zurich’s Tim Bailey

Jaskeet Briah
clock 26 February 2025 • 1 min read
FCA reconsidering ongoing advice services rules as review findings revealed

FCA reconsidering ongoing advice services rules as review findings revealed

Advisers delivering suitability reviews in ‘vast majority’ of cases

Jen Frost
clock 24 February 2025 • 2 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