Corbyn’s plan to end benefit freeze at cost of £3bn a year
JEREMY Corbyn yesterday pledged to scrap the benefits freeze, landing the taxpayer with a £3billion-a-year bill.
The Labour leader told a rally in Scotland that if he entered Number 10, welfare payments would rise along with inflation.
When he was Chancellor, George Osborne introduced the freeze as part of the Tories’ drive to tackle the country’s huge deficit and it is due to last until 2019.
Labour’s manifesto launch in May was overshadowed by confusion over the party’s position on working-age benefits. The general election document did not include any mention of getting rid of the benefit freeze, but Mr Corbyn said on the morning of the launch that ‘clearly we’re not going to freeze benefits’.
His office later had to issue a clarification, saying the freeze would not end after all.
But speaking at a rally in Coatbridge, Lanarkshire, yesterday, the Labour leader said his party is now in favour of ending the freeze.
‘Labour will take a different approach to our social security system, which under the Tories is failing our pensioners, the working poor, and disabled people,’ he added.
‘We will lift the freeze on social security, using part of the billions we set aside for reform in our costed manifesto, by recycling social security savings made by introducing a real living wage of £10 an hour and by building the affordable homes we need.’
The Tories’ benefits freeze saves around £3billion a year.
Mr Corbyn also accused ministers of ‘turning their backs on unemployed, sick and disabled people’ with their Job Centre closure plans.
He said: ‘In places where poverty is high and job opportunities low, closing Job Centres is counter-productive.
‘The Tories are planning to force a million more working people to attend a Job Centre,
‘Labour’s sums don’t add up’
under its plans for in-work sanctions, while simultaneously closing one in every ten Job Centres.
‘That is the twisted logic of this government’s chaotic austerity agenda. The closures make it absolutely clear that this government has no interest in helping people to find decent and secure work.’ Labour’s election manifesto only promised to scrap cuts to some benefits and review the Government’s flagship Universal Credit programme.
After its launch, shadow foreign secretary Emily Thornberry said the freeze could not be completely reversed because ‘we shouldn’t be promising things we cannot afford’.
Yesterday Liz Truss, the chief secretary to the Treasury, said ending the benefits freeze would cost almost £13billion over five years.
‘Labour spent their election campaign promising the country things they simply couldn’t afford and they’re doing the same thing again,’ she said.
‘Ending this freeze would cost £12.9billion and leave ordinary, hardworking people footing the bill. If Labour want people to put their hands in their pockets to pay for this they must set out where the money will come from.
‘It is clear Labour’s sums simply don’t add up. Only the Conservatives have the plan to build a stronger economy so that we don’t burden future generations with our debt.’
Last night a Labour spokesman said: ‘We are confident that we will be able to end the benefits freeze.
This will be achieved through a fundamental reform of the social security system, the introduction of a real living wage, a major house building programme – all of which will deliver savings.
‘Additionally, our manifesto costings set aside funding of £10billion over the Parliament, on top reversing other social security cuts.’
yet another barrow-load of banknotes from his magic money tree, Jeremy Corbyn pledges to end the benefits freeze that has encouraged record numbers to find fulfilment in work. With government debt approaching £2trillion, could there be any less cost-effective way of spending £3billion a year of our money? Or is this pledge, like his hint that he’d write off student loans, just another deceitful ploy to dupe the gullible into backing him?