Likely concessions on welfare reform

The House of Lords defeated the Government on seven key elements of the Welfare Reform Bill; one of those elements include the proposal to cap out-of-work benefits at £26,000 per household.

In the Commons today, ministers aim to overturn the defeats and will table their own amendments to reinstate the original plans.

It is been reported that Secretary of State Iain Duncan Smith is likely to offer “transitional arrangements” to help families who will be hit by the cap which may include a new fund to help pay the moving costs of any family that cannot afford to remain living in a large home once the £26,000-a-year limit is introduced…. the size of the home is really irrelevant; large or small, the cost of living and indeed accommodation is higher in certain parts of the country than in others..

IDS may also offer a “grace period” so that benefit claimants who have lost their jobs after years of contributing National Insurance payments through work will not immediately fall under the cap. but will be allowed to claim unlimited benefits for a period of time.

Naturally the Lib Dems are claiming that they are a stablising force reining in the excessess of the Conservative wing of the Coalition government.. Who Knows…

The Labour Party is planning to table its own proposals which is that the cap should be set a local level… consistent with the acknowledged regional variation in the cost of living and housing…. Even with this, Labour’s general position is far too unclear even confused

Labour will oppose the Government’s amendments and table its own rival proposals — for the cap to be set at a local level, reflecting the cost of housing in different parts of the country.