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7m to lose out over welfare plans

7m to lose out over welfare plans

Seven million working families will lose out under the Coalition’s plans for a real-terms cut in benefits, economists have warned.

A new report from the Institute for Fiscal Studies said millions of people in work will be worse off by an average of £165 a year.

The report comes ahead of a Commons vote on the Benefits Uprating Bill tomorrow, with Labour committed to opposing the plans.

Shadow Work and Pensions Secretary Liam Byrne tonight accused the Conservatives of “hijacking support” for working people.

“Tomorrow's Bill does nothing to create a single new job, fix the chaos in Universal Credit or the Work Programme which has been an utter failure,” he said.

“So we'll be asking MPs to vote for real welfare reform, a compulsory Jobs Guarantee that will end life on welfare for the first time.”

Former Lib Dem minister Sarah Teather has announced she will vote against the bill, saying she was "deeply anxious" about the impact of the changes on the poorest.

"Many of those people who are affected by this are in work and we have a huge problem with in–work child poverty and we’re only going to make this significantly worse by affecting those at the bottom end of the income spectrum," she told BBC Radio 4's the World at One programme.

Nick Clegg earlier attacked the language used by some Conservative ministers to justify capping welfare rises at 1%.

The Lib Dem leader's criticism came at the Coalition's mid-term review, when he was asked what he thought of the so-called ‘Skivers vs Scroungers’ rhetoric.

“I don’t think it helps at all to try and sort of portray that decision as one which divides one set of people against another, the deserving and the undeserving poor, people in work and out of work,” he said.

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