Newspapers have been reporting for months that the Liberal Democrats were not prepared to sign up to Tory plans for £10 billion of welfare cuts in a spending review that would draw up plans for spending into the next Parliament. Today’s Independent says that Nick Clegg himself will ensure that this Government only produces spending plans for 2015-16. The electorate will then decide in the 2015 election whether they want to pursue further cuts in welfare or a heavier burden of tax on the wealthy.
The Liberal Democrats’ opposition means the review will have to be watered down. Before the election, the Coalition will need to agree detailed plans for the 2015-16 financial year – for example, so that local authorities can fix council tax levels for that year. But a detailed agreement on across-the-board cuts well into the next parliament now looks politically impossible. “It is proving too difficult; we are not going to reach agreement,” one Liberal Democrat minister told The Independent.
It’s an encouraging sign that Nick Clegg is seen to be blocking further cuts to a welfare budget that has already taken a huge hit in this Parliament. We already know that David Cameron’s ideas on further cuts include denying Housing Benefit to the under 25s, a step that is hideously unfair.
If the Independent report is accurate, Nick Clegg’s actions will ensure that such measures will not be implemented ahead of the 2015 General Election. That in itself is a good sign and something that Liberal Democrat members can take heart from. I do, however, think that it’s important that he and other senior Liberal Democrats spell out exactly why that draconian approach to welfare is wrong. Nobody else is going to tackle the Tories’ ill informed prejudice about benefit claimants. Somebody needs to speak up for a compassionate welfare system that supports those who, through no fault of their own, are unable to find a job or are too ill to work, but also liberates people from being trapped on benefits by making work pay.
Actions may speak louder than words, but it’s the words that can be replayed time and time again on You Tube and repeated on leaflets. It’s important that we start getting our distinctive, Liberal Democrat approach across now. It’s too late if we leave it until the 2015 election campaign. I’ve written before that Nick needs to be openly critical of Tory plans post 2015. We know how effective he was before 2010 over the Tories’ planned marriage tax break, which the Liberal Democrats have prevented, and in making the case for the raising of the tax threshold, which we’ve implemented.
There will no doubt be discussion and debate around this at the Liberal Democrat Federal Conference in Brighton in September, if not as the Independent article suggets, on the floor of Conference itself, certainly around the fringe.Our party gives its members a role like no other in making policy and developing ideas. As we are putting together ideas for 2015, maybe now is the ideal time to join, or re-join and be part of that process.
* Caron Lindsay is Editor of Liberal Democrat Voice and blogs at Caron's Musings
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10 Comments
Entirely the wrong message from Mr Clegg – unless he thinks the current welfare system is near perfect it needs further reform. Any reform can be presented as ‘a cut’ to someone. Soem proposlas such as removing housing benefit from under 25’s are wrong, but can anyone seriously say they wouldn’t welcome reducing the £22 billion housing benefit bill ? One way to do that is to return to building coucnil houses. Don’t fall into the trap of sticking up for a deeply flawed system which often has perverse outcomes.
shame, i won’t be happy until spending as a proportion of GDP is well under 40%.
Caratacus, some welfare reforms may save the Exchequer money while improving the system. But improving the system (which is, I agree, in many places in need of reform) should be the aim, not cutting costs.
jedibeeftrix, I agree that we do need to lower the size of state spending relative to GDP. But I’m not convinced that this is the way to do it, or the time to do it. I’ve generally been a supporter of the Coalition’s economic plans – it’s clear that if we’d listened to Ed Balls, we’d have been downgraded by now with all the economic peril that leads from that. But there’s room for disagreement and differentiation with the broad strokes of the Coalition-agreed deficit reduction plan.
“Actions may speak louder than words, but it’s the words that can be replayed time and time again on You Tube and repeated on leaflets.”
Ah, mon Dieu, cela n’empeche pas!
The country always seem to get outraged by any talks of cutting benefits to pensioners, it’s toxic to all of the 3 main parties, However, the sick and disabled seem to be fair game all the time and look ready to take another hit.
I am not saying that I support cutting benefits of people of pensionable age, however, I do feel it is time that the sick and disabled are given a break and deserve just as much support and compassion from the country and government.
The total welfare bill is £200 Billion
Over 40% of the welfare budget is spent on Pensions.
on top of that we have people of pension age in receipt of DLA if claimed before reaching 65 or Attendance allowance if after,
Housing Benefit
Council tax benefit
Bus Passes, TV Licences, winter fuel allowance etc.
So when you put the rest of the spending on welfare into perspective £87.7 Billion
which is made up of
Child Benefit £11.2 Billion
Tax Credits £23.7 Billion
Child element of Income support £1 Billion
widows/bereavement £500 million
Incapacity £6.2 Billion
ESA (Cont Based) £660 Million
ESA (Income Based) £718 Million
Severe Disablement allowance £702 Million
Stat Sick Pay £65 Million
DLA £7.6 Billion
carers allowance £1.5 Billion
JSA (Cont) £1.1 Billion
JSA (Income) £3.7 Billion
Job Grants £158 Million
Income Support £7.5 Billion
Social Fund £827 Million
Housing Benefit £15 Billion
C Tax £3 Billion
Maternity allowance £353 million
Stat maternity pay £1.8 Billion
Total £87.7 Billion
I think it is pretty fair to say that the sick and disabled are being targeted unfairly. Remember out of that £87.7 Billion, some of that budget also goes towards those of pensionable age in the form of Housing Benefit/Council Tax and DLA
The next Majority goes towards working Tax credits and child related Benefits.
Sure the figures look bad when we here of a £200 Billion Pounds Welfare Bill, But it is time to put things into perspective and realise, that the sick and disabled only take up a tiny portion in comparison to other groups. Its time the most vulnerable where given a break and treated with a bit more compassion and respect as is given to the elderly.
It aint much if our big win is to block proposals that will depend on a different government to implement.
@ Dave – “But there’s room for disagreement and differentiation with the broad strokes of the Coalition-agreed deficit reduction plan.”
Fair enough, and happy to agree, but i do rather see these pronouncements through the lense of lib-dem frothing over David Laws recent comments.
@matt what is the source of your figures? I need a link to such data as it is very useful.
@ lloyd
I used these sources for information.
http://www.guardian.co.uk/news/datablog/2010/jun/02/liberal-conservative-coalition-welfare
https://docs.google.com/spreadsheet/ccc?key=0AjuKrzV2yCOLdGo2elR2bU1XYUtCbnM0cWhxR3ZwX0E#gid=0
and
http://blogs.spectator.co.uk/coffeehouse/2010/08/what-do-you-need-to-know-ahead-of-the-spending-review-welfare/