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PM considers regional benefits rates

The Prime Minister is considering introducing regional benefits rates, as part of a wider welfare debate.

A spokesperson from No 10 has indicated that David Cameron is keen to consider whether it makes sense to set benefits at a national level, in light of the fact that pay levels are different across the whole of the UK.

He has also raised the idea of cutting housing benefits for under-25s to prevent the state from “dragging young people into dependency”.

The speech, which also expressed hopes that the Liberal Democrats would agree to some of his ideas, is seen as an attempt by the Prime Minister to reconnect with party members who have accused him of allowing the Liberal Democrats to water down traditional party values.

However, regional benefit payments are likely to prove controversial, as more affluent regions would probably receive higher payments than those in poorer regions. While a decision has yet to be taken, it is believed that regionally-based payments would only apply to working age benefits.

In his speech, Mr Cameron said: “Those within it grow up with a series of expectations: you can have a home of your own, the state will support you whatever decisions you make, you will always be able to take out no matter what you put in.

Mr Cameron expressed concern that the housing benefit system for the under-25s encouraged youngsters to “grab” independence through the benefit system rather than earning it. He also outlined the idea of curbs jobseekers’ allowance, including linking the up-rating of benefits to wages instead of inflation when pay is not rising as much.

However, some have expressed concerns that by taking away housing benefits from thousands of young people at a time when many are struggling to find work, the Government risks damaging their long term prospects.

This was posted in Bdaily's Members' News section by Ruth Mitchell .