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Press Release

Press Releases

Grant Shapps: Labour’s plan to borrow more to fund higher benefits isn’t fair or credible

Conservative press release

Shapps: Labour’s plan to borrow more to fund higher benefits isn’t fair or credible

Today, Ed Balls gave the strongest indication yet that Labour would vote against the £4.4 billion benefits bill savings in the Welfare Uprating Bill – without saying how they would pay for it.

In the Autumn Statement, the Chancellor announced that the Government would be temporarily uprating benefits by 1 per cent rather than inflation, to bring the uprating in line with public sector pay and the higher rate income tax threshold.

Last year benefits were uprated by over 5 per cent and since the financial crisis began benefits have increased twice as fast as wages.

Commenting, Conservative Party Chairman Grant Shapps said:

"Labour just don't get it on welfare. First they voted against our Benefit Cap - where no one can get more in benefits than the average working family - and now they oppose our tough but fair plan to save more money from the benefits bill.

"With pay restraint in business and in government, benefits have risen twice as fast as pay since the crisis began. So it’s fair to make savings from the benefits bill to cut the deficit.

"Labour’s plan for more borrowing and more debt to fund higher benefits isn’t fair or credible."


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