In 2017 we proposed spending more than the Labour Party on reversing some of the benefit cuts since 2010. This year the Institute for Fiscal Studies after looking at both of our manifestos concluded, that while we both increase benefit spending “to around its 2010 level … this money doesn’t go as far as it used to, because of underlying pressures pushing up benefits spending, including rising housing costs and a bigger population. Taking these into account, these pledges would only reverse around a quarter of discretionary cuts to benefits since 2010.”
According to the Labour Party’s costings they plan to increase spending on working-age social security by £8.4 billion by 2023/24 (page 4). (They just give a total without breaking the figures down.) In their manifesto they state they will scrap the benefit cap and the two-child limit, they will split benefit payments for couples, and they will restore fortnightly payments and paying the housing element directly to landlords (page 73).They will also end the ‘digital only’ approach for claiming benefits. All these reforms were suggested by Philip Alston the UN Rapporteur on extreme poverty in his report this year. Furthermore, they will scrap the bedroom tax and increase the Local Housing Allowance by an unspecified amount, end Work Capability and PIP Assessments and make sure these are done “in-house”. They will restore the extra money for those in the Work-Related Activity Group receiving Employment and Support Allowance cut by the Conservatives.
The Labour Party claim that they “will eradicate in-work poverty in our first term by tackling the structural causes of poverty and inequality, such as low pay and high living costs, while raising the floor provided by our social safety net” (page 59 of their manifesto). I couldn’t find in their manifesto what they would increase benefit levels to. I believe for a couple, one of which works 16 hours a week on Labour’s new National Living Wage of £10 an hour, for their income to reach the poverty line the couple’s benefit level would need to be increased by just over £46 a week (about 40%) even assuming work allowances were restored to their 2015 level for people without children. I estimate this would cost in the region of £11 billion a year.


What besides leading the campaign against Brexit have the Lib Dems ever done for Britain?



