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Labour to oppose welfare move

Labour to oppose welfare move

Labour will vote against the Government's cuts to welfare unless they reverse the top-rate tax cut, Ed Balls said today.

Addressing George Osborne, the Shadow Chancellor said: "If he intends to go ahead with such an unfair hit on middle and lower income working families while he’s giving a £3bn top rate tax cut, we will oppose it."

The Government plans to uprate benefits by only 1% for the next three years, which will mean a real-terms welfare cut.

Mr Balls claimed the Government's measures in the Autumn Statement were hitting working families particularly hard, but George Osborne said working people would be £125 better off on average.

Speaking at Treasury questions this morning, Mr Balls said that, according to the Institute for Fiscal Studies, a one-earner family would be £534 worse off from the Chancellor's benefit changes. He also pointed out that "on average every Tory constituency has over 6,000 of these families who will lose out".

Mr Osborne argued that the raising of the income tax threshold meant that working people would still be better off in spite of losing some tax credits.

Green Box: Labour to oppose welfare moveClick to open

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