A cap on social security spending

  • Speaking at the Labour party conference in Brighton Ed Balls has said that a Labour government will have to "govern with less money around." Coins

    The shadow chancellor has said that: "The next government will have to make cuts too, because while jobs and growth are vital to getting the deficit down - something this government has never understood - they cannot magic the whole deficit away at a strike" reports Inside Housing.

    "We will have a cap on structural social security spending" says Mr Balls. The coalition government in the summer pledged an overall government welfare spending cap from 2015.

    Mr Balls confirmed that Labour would keep the coalition government's household benefits cap, "but would make sure it properly reflects local housing costs."

    It was also confirmed that Labour would introduce a compulsory jobs guarantee for young people and adults who have found themselves out of work for more than two years. If those people did not take up an offer of work they would consequently lose their benefits.

    "That is welfare reform that works, matching rights with responsibilities" says Mr Balls. Earlier this year, Mr Balls himself repeated a call for £10bn of infrastructure investment to be brought forward to fund 400,000 homes over the next two years.

    Image source: http://www.sxc.hu/photo/598487

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