Benefits in coalition’s sights
Winter fuel payments and child benefit are under threat as the coalition government contemplates how to reduce Britain’s welfare bill.
Ministers are reportedly considering scrapping child benefit for middle class families as part of a bid to reduce spending in the Department for Work and Pensions by £13 billion.
Senior Labour figures responded with outrage to the news as ministers prepared to dismantle the welfare state they spent 13 years building up.
The qualifying age for the winter fuel payment could be increased from 60 to at least 66, the Telegraph newspaper reported.
But government spokespersons rushed to point out the coalition would not abandon universal benefits altogether, after David Cameron stressed his party’s commitment to keeping benefits during the general election campaign.
“We will have to find savings on what is a very large welfare bill,” deputy prime minister Nick Clegg told the Today programme.
“I think it is right that you should try to reform the system so it is as simple as possible and so there are incentives to work.”
A radical overhaul of the benefits system is being undertaken by work and pensions secretary Iain Duncan Smith. He is believed to have secured agreement for a £3 billion budget to cover up-front costs of the changes.
Labour leadership contender Ed Miliband said it was an “outrage” that Mr Cameron was considering another reported measure – ending free bus passes for pensioners.
“You didn’t have to be able to read his lips during the general election to hear him promise that he would keep free travel and winter payments for the elderly,” he said.
“British pensioners who are expecting these entitlements would be right to feel betrayed if he goes back on his word.”
Mr Clegg said the situation was “complex” and “we haven’t taken any decisions yet”. The full scope of the government’s plans will be revealed in the comprehensive spending review on October 20th.
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