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Labour's manifesto does not commit to ending four-year freeze on working-age benefits

Speaking to reporters after the speech, Mr Corbyn said “we have not made a commitment on that" when asked about the freeze on working-age benefits

Ashley Cowburn
Political Correspondent
Tuesday 16 May 2017 16:33 BST
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Jeremy Corbyn pledged to 'resign' the two-child limit on tax credits
Jeremy Corbyn pledged to 'resign' the two-child limit on tax credits (Danny Lawson/PA Wire)

Labour’s manifesto does not commit to ending the four-year-freeze on working age benefits despite Jeremy Corbyn earlier indicating the party would lift the freeze on those with the lowest incomes in Britain.

Speaking at Labour’s manifesto launch at Bradford University, Mr Corbyn said while answering questions that “clearly” Labour would not freeze benefits if elected in just over three weeks’ time.

But his assertion sparked immediate questions over why the policy was not mentioned in the manifesto and associated costings, given Labour’s insistence that all its pledges are fully funded with details set out in the documents.

Speaking to reporters after the speech, Mr Corbyn appeared to row back on his earlier suggestion. Asked if lifting the benefits freeze was costed in the manifesto, he said: “We have not made a commitment on that.

“The commitment I make is that I do understand the perverse effects of the cap...and we will be dealing with that in the context of more affordable secure housing and high wages through the living wage.”

His comments contrasted with his remarks in the Q&A session following his speech, when he said: "Yes, increasing benefits is important and clearly we are not going to freeze benefits, that is very clear. We are also looking at the perverse effects of the benefit cap on people and their housing accommodation, particularly in London and the centre of our big cities.”

Last month The Independent revealed the Treasury had grossly underestimated the severity of its four-year freeze on working-age benefits, with the cap set to hit claimants by almost 50 per cent more than official estimates. Research from the House of Commons Library showed that – due to rising inflation – the measure introduced last year is now expected to reduce support by £13bn over the next four years, compared with the recent official Government forecast, of £9bn.

At the time, Debbie Abrahams, the Shadow Work and Pensions Secretary, said as a result of the four-year freeze, “the living standards of millions of families who rely on tax credits, child benefit or other forms of social security will put under even greater pressure”.

Sources close to the Labour leader, however, said that a commitment in the manifesto to spend an extra £2bn extra a year on universal credit “for review of cuts and how best to reverse them” would mitigate some of the effects of this freeze. The Independent understands a full like for like reversal of the freeze is an aspiration the leader's office hope to achieve through additional revenue growths by an investment-led economy.

The four-year freeze on working-age benefits, which includes the main rates of Jobseeker’s Allowance, Income Support, Employment Support Allowance and Housing Benefit, as well as Child Benefit and other working tax credits, came in last April and affects 11 million families across the UK.

Labour’s manifesto does however commit the party to acting immediately, if elected, to “end the worst excesses” of the changes to welfare by the Conservatives. They will scrap the “punitive” bedroom tax, reinstate housing benefit for 18-21 year olds and scrap cuts to bereavement support allowances that came into effect last month.

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