Government forced into rethink after Welfare Reform Bill defeat

February 2, 2012
Alex Osborne

Monday evening saw the UK government suffering defeat at the hands of the House of Lords, as a £26,000 household benefit cap was quashed by 15 votes. The amendment passed excluded child benefit from the cap.

With debate and disagreements between the Commons and Lords over the Welfare Reform Bill ongoing, particularly with regards to the Child Support Agency (CSA), the reforms remain in political limbo between houses, and the road ahead is unclear.

The successful amendment passed on Monday was put down by the Rt. Rev. John Packer, who claimed that child benefit was “universal” and should not be tampered with. Downing Street has already announced its intention to reverse the amendment, meaning that the reform bill will likely continue to move between houses until a mutual ground is reached.

Perhaps more significantly, Tuesday saw Lord Mackay of Clashfern, a Conservative peer, leading a rebellion against the proposed implementation of charges of up to 12 per cent for single parents attempting to access the CSA. In support of Lord Mackay, fellow Tory peer, Lord Newton, deemed the proposition as “bordering on the indefensible.”

While clashes such as this are common between Houses, the divide in public and political opinion over the Welfare Reform Bill implies that further difficulties are soon to follow over the issue.

The government argues that placing a cap on all household benefits would fight unemployment and save around £290m in the next year, and that their policy falls in line with public interest.

However, Baroness Tonge, a Lib Dem peer, retorted that public opposition to the amendment was “whipped up by the tabloid newspapers.” Equally, while Lord Mackay said the coalition’s proposals regarding the CSA were “unfair,” some critics call into question the legitimacy of the House of Lords having authority on matters of such social importance and magnitude.

Ultimately, the issue places all political parties under considerable strain. The manner in which the bill is floating somewhat unproductively from chamber to chamber runs the risk of the Conservatives appearing indecisive.

The Lib Dems are caught in the compromising position of having the duty of ‘watering down’ the Conservatives’ more drastic welfare reforms.

In the same right, the Labour Party is under pressure to offer a more concrete opinion on the bill as a whole, as their reaction thus far has been somewhat mixed.

It cannot be denied that the welfare reforms have the potential to hit the poorest families of our society hardest, and during a recession this attitude seems all the more harsh. BBC figures estimate that 67,000 families would lose £83 a week if the household benefit cap was implemented with no restrictions; a considerable sum that could make a significant difference to the families affected.

What is important is that some sort of consensus is reached. If the Welfare Reform Bill continues to ping-pong between chambers, it will become increasingly difficult for changes to appear credible and mutual. It is time for the coalition government and the Lords to make a decision: cuts must be made, but it would likely be in the best interest of the people that they were made elsewhere.

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