May ‘not afraid to restrict pension benefits’
Tories to break with past for social care shake-up
THERESA MAY will today announce plans to restrict pensioners’ benefits and increase the number of people who pay for their own care as part of a raft of measures designed to put social care on a more sustainable footing.
Stating that she is not afraid to “be straight with people”, the Prime Minister will argue that the changes will help to create a “fairer” system.
The proposals signal a break from the policies of her predecessor at Number 10, whose promises to protect pensions and slash inheritance tax were carefully targeted to woo the “grey vote”.
Setting out her own vision for the country at her party’s manifesto launch today, Mrs May will instead warn of the need to tackle the challenges facing the country head-on, as she vows to make the “difficult” decisions that are “right for Britain in the long term”.
“People are rightly sceptical of politicians who claim to have easy answers to deeply complex problems,” she will say. “It is the responsibility of leaders to be straight with people about the challenges ahead and the hard work required to overcome them.
“This manifesto sets out a vision for Britain’s future – not just for the next five years, but beyond... It is a declaration of intent: a commitment to get to grips with the great challenges of our time and to take the big, difficult decisions that are right for Britain in the long term.”
A number of influential organisations have warned of a looming crisis in the country’s social care system, as local authorities struggle to cope with rising costs and soaring demand. Councils in Yorkshire have set aside £1.4bn for social care for this year alone.
The Conservative plans include new restrictions on the winter fuel allowance, to target the least-well off pensioners. Currently the payments are available to anyone aged over 65 regardless of wealth, but under a Tory government it would become means tested to help those “most at risk of fuel poverty”.
There will also be changes to the way funding for at-home care is means-tested, so that the value of someone’s property is included in calculations to determine whether or not they qualify for free care.
At the moment the value of homes are only factored in when setting costs for care in a residential setting. But extending the measure means more people will be required to pay for their own care, with the extra money channelled back into the care system.
These potentially unpopular proposals will be sweetened by a pledge to increase the level at which assets are protected from the costs of care. The amount will be raised from just over £23,000 to £100,000, “ensur[ing] everyone can pass on their wealth to their families”.
Mrs May will also announce new protections to guarantee that “no one has to sell their home within their lifetime to pay for care”. This would see the right to “defer” payments for care costs extended to those receiving care at home.
It is the responsibility of leaders to be straight with people Theresa May, who says her difficult decisions will create a fairer system in long term.
THERESA MAY and Philip Hammond made a concerted effort to present a united front yesterday, as they launched a fresh attack on Labour’s plans to introduce a raft of new taxes on business and high earners.
In a joint appearance in Canary Wharf – the heart of London’s financial sector – the pair dismissed suggestions of tensions between Number 10 and the Treasury as they sought to reinforce their offer of strong leadership and economic credibility.
The Prime Minister also played down claims that Britain’s pending departure from the EU is to blame for the declining value of the pound, which has seen inflation outstrip wage increases for the first time since 2014.
Mrs May went on to warn that the impact of Brexit would be worse under a Labour government, whose plans to increase corporation tax and borrow billions to invest in infrastructure she said would “destroy” the economy.
The show of unity by the Prime Minister and the Chancellor follows reports of clashes between their two departments, particularly over the party’s tax and defence policies. A recent article in
The Times newspaper suggests relations between the two sides began deteriorating in the wake of the disastrous National Insurance announcement in the Spring Budget, with subsequent disagreements over energy price caps and pensions.
Quizzed about their working relationship by reporters, both Mrs May and Mr Hammond tried to laugh off the allegations, with the Chancellor dismissing the reports as “tittle tattle”.
But when pressed to confirm whether Mr Hammond would retain his position at the Treasury after the election, Mrs May said only that “I and every other member of my team are focused on June 8”.
Mr Hammond added that the pair “work very closely together” and “have known each other for many, many years”.
He told the Press conference: “We do work very well together as a team. All this media tittle tattle is just that, media tittle tattle.”
The core message of the Prime Minister’s speech was a warning that the pledges outlined in Labour’s manifesto would cause “economic chaos” for families across the country. The Tories have accused Labour of having a £58bn black hole in their costings, and Mrs May said ordinary people would “pay the price” at a time when the country was going through Brexit negotiations.
However, the latest ONS figures show inflation rates have jumped to 2.7 per cent for the first quarter of 2017, with economists pointing to the declining value of sterling in the wake of last summer’s referendum as a “significant factor”. This coincides with a slow down in wage growth, resulting in a real-term wage reduction of 0.2 per cent.
Asked whether Brexit was to blame, Mrs May admitted “changes to currency” had impacted on inflation. But she said her party had a “credible plan” to strengthen the economy, while Labour policies would “destroy it”.
THERESA MAY has two significant grounds for optimism as she prepares to unveil the Tory manifesto – the reputed £58bn ‘black hole’ in Labour’s own spending plans and confirmation yesterday that the UK’s jobless rate has fallen to a 32-year low because a record number of people are in work.
The Prime Minister must also guard against complacency. Seven years after coming to power, Tory attempts to eradicate the deficit are still a ‘work in progress’ while reported tensions between Mrs May and the Chancellor are such that Philip Hammond can no longer be assured of his job.
Given that Labour deputy leader Tom Watson and now Unite power-broker Len McCluskey have effectively conceded defeat with three weeks to go, the Tory leader intends to demonstrate statesmanship by setting out her strategy for five defining policy challenges, including Brexit, as she seeks her own mandate.
In doing so, Mrs May needs to pass three tests. First, the Tories need to back up their policy prospectus with clearly costed plans – they’re not immune to the public’s deep scepticism about politics and politicians per se.
Second, the PM should make a positive case for Conservative values rather than regurgitating her tried and tested soundbites. Simply expecting people to vote Tory because Labour is bereft of credibility must not suffice – her mandate will be all the stronger if it’s achieved on the back of a forward-looking manifesto which inspires the country and its work ethic.
Third, Mrs May needs to demonstrate how her manifesto will make a material, and lasting, difference in those Yorkshire mill towns and communities along the M62 corridor where the vote will determine the final outcome on June 8. Labour’s launch in Bradford on Tuesday promised to turn the clock back; Mrs May needs to show that the Conservatives are the party for not only these times but the future as well.