Clegg backs plans to limit housing benefit for under-25s

Deputy PM contradicts Simon Hughes and says "savings" can be made.

On last night's edition of Question Time, Simon Hughes declared that the Lib Dems were opposed to plans to abolish housing benefit for most under-25s. The party's deputy leader said: "Nick agrees with me on this. We have not signed up to cutting housing benefit for the under-25s and I don't imagine for a moment we will."

But after listening to Clegg's Q&A on Radio 5 Live, it's clear that Nick doesn't agree with him. While the Lib Dem leader said he was opposed to a "complete blanket ban" on under-25s claiming housing benefit, he added that "savings" could be made. In other words, he supports a partial ban, with exceptions made for those leaving care and for "people who've suffered abuse" (in Clegg's words). In his speech on welfare in June, Cameron indicated that there would be exemptions.

Again, I want to stress that a lot of these young people will genuinely need a roof over their head.

Like those leaving foster care, or those with a terrible, destructive home life and we must always be there for them.

Clegg, therefore, is happy with the policy as it stands.

Hughes rightly argued against the proposal on the grounds that it would penalise the 17% of HB claimants who are in employment (indeed, 93% of new claims in 2010-11 were made by in-work households) and the seven per cent who are sick or disabled, but it seems Clegg would have no objection to these groups losing the benefit.

Elsewhere, the Deputy PM repeated his demand that further cuts to welfare (he refused to endorse the figure of £10bn) be balanced by tax increases on the wealthy. "You ask people at the top and then work down, you don’t ask people at the bottom and then work up," he said.

Nick Clegg said "savings" could be made by restricting housing benefit for the under-25s. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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