Tories ‘will raise benefits bill’

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Published: Wednesday 4th February 2015 by The News Editor

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Shadow work and pensions secretary Rachel Reeves is warning that Tory policies would increase the benefit bill.

In a speech, the front bencher will attack the coalition’s failure to “make work pay”.

The number of working people claiming housing benefit has risen by 66% since 2010 to over a million, she will claim. In Havering the figures have gone up by 110%, while in Sheffield the rise is 106%.

If average earnings growth remains below forecasts by the same amount in the next parliament, it will add £9 billion to social security spending, according to Ms Reeves.

Delivering her speech at the Bloomberg HQ, Ms Reeves will say: “The number of working people reliant on Housing Benefit to keep a roof over their head will have more than doubled over the decade at a cost of over £14 billion.

“According to new analysis we are publishing today from the House of Commons library, five more years of Tory failure to make work pay, with wages falling short of expectations to the same extent in the next parliament as they have in this, will mean we face another £9 billion in social security spending on top of that already projected – a £337 bill for every household in the country.

“The choice we now face is clear: the Tories’ low wage, low skill economy driving up benefit bills and undermining tax revenues or Labour’s plan: a plan to help businesses create and fill more productive, high skilled jobs.

“The Tories will leave us paying the bills of in-work poverty for years to come. Only Labour will make work pay.”

Published: Wednesday 4th February 2015 by The News Editor

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