Osborne stirs up Labour split ahead of vote on cuts
Labour leadership candidates could rebel against amendment that backs some of the Budget measures
George Osborne is seeking to exploit a split in the Labour Party over the latest reforms to welfare including substantial tax credit cuts. In a letter to The Guardian which backs the stance of interim leader Harriet Harman, the chancellor is calling on 'progressive MPs' to stand with the government.
He writes: "Three in four people – and a majority of Labour voters – think that Britain spends too much on welfare. For our social contract to work, we need to retain the consent of the taxpayer, not just the welfare recipient."
The letter comes ahead of a key vote in the House of Commons this evening on the Welfare Reform and Work Bill, which will bring into effect changes announced at the Budget earlier this month. This includes lowering the benefit cap, bringing down the threshold at which working tax credits are tapered and cutting child tax credits for families with more than two children. There are also plans to introduce a higher minimum wage that is set to reach above £9 an hour by 2020.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Despite its slim majority, the Conservative government will not need Labour votes to get the bill passed as it is unlikely to face a rebellion on its own benches. Other smaller parties are also likely to vote in favour. The letter does, however, highlight a major split in the main opposition party.
Harman, who is not running in the Labour leadership election later this year, had initially said the party should abstain from the vote rather than oppose it outright. The acting Labour leader signalled support for some elements, including the welfare cap of £20,000 (£23,000 in London) and cuts to child tax credits. She was later forced into a partial retreat amid a chorus of dissent and proposed an amendment calling for child poverty targets to be reinstated and for further reforms to disability benefits to be scrapped.
According to the BBC, at least one of the leadership candidates, left-winger Jeremy Corbyn, is still intending to vote against the bill. Speaking on the Today programme this morning, Helen Goodman, Labour's former shadow minister for welfare reform, also called on her colleagues to reject the plans.
An analysis by the Social Market Foundation in the wake of the Budget found that the changes would leave a couple with two children and one earner on the minimum wage about £200 a year worse off. A similar family with both parents working would be £6,000 a year better off.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Today's political cartoons - November 3, 2024
Cartoons Sunday's cartoons - presidential pitching, wavering convictions, and more
By The Week US Published
-
Why Man United finally lost patience with ten Hag
Talking Point After another loss United sacked ten Hag in hopes of success in the Champion's League
By The Week UK Published
-
Who are the markets backing in the US election?
Talking Point Speculators are piling in on the Trump trade. A Harris victory would come as a surprise
By The Week UK Published
-
Do Tory tax cuts herald return of austerity?
Today's Big Question Chancellor U-turns on scrapping top rate tax but urges ministers to make public spending cuts
By Elliott Goat Published
-
Labour shortages: the ‘most urgent problem’ facing the UK economy right now
Speed Read Britain is currently in the grip of an ‘employment crisis’
By The Week Staff Published
-
Will the energy war hurt Europe more than Russia?
Speed Read European Commission proposes a total ban on Russian oil
By The Week Staff Published
-
Will Elon Musk manage to take over Twitter?
Speed Read The world’s richest man has launched a hostile takeover bid worth $43bn
By The Week Staff Last updated
-
Shoppers urged not to buy into dodgy Black Friday deals
Speed Read Consumer watchdog says better prices can be had on most of the so-called bargain offers
By The Week Staff Published
-
Ryanair: readying for departure from London
Speed Read Plans to delist Ryanair from the London Stock Exchange could spell ‘another blow’ to the ‘dwindling’ London market
By The Week Staff Published
-
Out of fashion: Asos ‘curse’ has struck again
Speed Read Share price tumbles following the departure of CEO Nick Beighton
By The Week Staff Published
-
Universal Music’s blockbuster listing: don’t stop me now…
Speed Read Investors are betting heavily that the ‘boom in music streaming’, which has transformed Universal’s fortunes, ‘still has a long way to go’
By The Week Staff Published