Saturday, 5 January 2013

A Coalition approach to welfare

Ed Miliband and Ed Balls oppose our plans to cap future rises in benefits to 1%. It is a tough but fair decision the government is taking. Yet as with all the tough choices Labour oppose it. So how would Miliband fund higher benefits? By cutting schools and hospitals? This time Clegg asks tough questions of Labour on welfare:


  1. Capping wages is no way to get people off benefits Guy, people need an incentive to work. Benefits are only just high enough for survival (as it probably should be, but not my point), but wages aren't high enough to compete with them. You can't lower benefits any more than they already are, so logic says the minimum wage must rise instead.

  2. On balance, I think it is fair to cap benefits at 1%. Although, I have a gut feeling it will be counterproductive in the end.

    I've said it before, I believe there will be unintended consequences of lower benefits, even if it is the fair thing to do at this time.

    I'd even go further, I'd only increase pension by 1%, but I guess old people are the ones that vote!

    One thing that does worry me about government policy at the moment is growth - maybe I'm not looking hard enough, but I don't see a growth strategy.