Nine Lib Dems rebel as Osborne's welfare bill clears another hurdle

Charles Kennedy, Sarah Teather and seven others vote against bill capping benefit increases at 1 per cent for each of the next three years.

The coalition's Welfare Benefits Uprating Bill (artfully renamed by Andrew Rawnsley as "The Make Labour Look Like the Party for Skiving Fat Slobs bill"), which introduces a 1 per cent cap on benefit increases for each of the next three years, comfortably made its way past the Commons last night, with MPs voting by 305 votes to 246 to give the bill a third reading. 

When MPs first voted on the bill earlier this month there were six Lib Dem rebels. Four of the party's 57 MPs - Julian Huppert, John Leech, Sarah Teather, David Ward - voted not to give the bill a second reading, while Andrew George and Charles Kennedy formally abstained by voting in both lobbies. Last night this total increased to nine. Below, I've listed those who voted against the bill and, where applicable, have included how far up they appear on Labour's target list of 106 seats. The Conservatives intend to target 20 Lib Dem seats at the general election but have yet to release a full list. 

1. Andrew George (St Ives)

Majority: 1,719

2. Martin Horwood (Cheltenham)

Majority: 4,920

3. Julian Huppert (Cambridge)

Majority: 6,792

Labour target 103

4. Charles Kennedy (Ross, Skye and Lochaber)

Majority: 13,070

5. John Leech (Manchester Withington)

Majority: 1,894

Labour target 31

6. Alan Reid (Argyll and Bute)

Majority: 3,431

Labour target 64

7. Adrian Sanders (Torbay)

Majority: 4,078 

8. Sarah Teather (Brent Central)

Majority: 1,345

Labour target 23

9. Mark Williams (Ceredigion)

Majority: 8,324

The most notable moment in the debate came when Labour's shadow employment minister Stephen Timms was asked whether it was his party's policy that benefits should be uprated in line with inflation, rather than by 1 per cent (a real-terms cut). Timms replied: "Uprating should indeed be in line with inflation, as it always was in the past." He later added: "We reject the proposal to restrict the uprating of social security and tax credits to 1% in our view, as I have already said uprating should be in line with inflation and it should be assessed as it always has been at the end of the preceding year." 

Timms's words were significant because, as I noted yesterday, Labour's amendment to the bill simply called for the cancellation of the 1 per cent rise, rather than for benefits to rise in line with the Consumer Price Index as normal. The Tories leapt on his statement as proof that Labour was committed to inflationary rises in benefits for the next three years. The party's Tiggerish chairman Grant Shapps commented: "Labour have committed to pay for more generous benefit rises with more borrowing and more debt. That’s exactly how they got us into this mess in the first place. Labour haven’t learnt and would do it all over again."

But Labour has since argued that Timms's words only reflected the party's existing position of increasing benefits in line with inflation this year (2013-14) and did not amount to a commitment to do so in 2014-15 and 2015-16. As the BBC's James Lansdale notes, on 6 January Ed Balls told Sky News: "The normal thing is to index and the government would normally have indexed in line with inflation and to be honest, I think that would be fair." He added: "It's not responsible for me as a shadow chancellor to come here two and a half years ahead and tell you what we can do about taxes or spending or benefits."

So, in other words, nothing has changed. But expect the Tories to continue to challenge Labour to give a much clearer indication of how it would behave in 2015. 

Former Liberal Democrat leader Charles Kennedy was one of nine Liberal Democrat MPs to vote against the Welfare Benefits Uprating Bill. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Paul McMillan
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"We're an easy target": how a Tory manifesto pledge will tear families apart

Under current rules, bringing your foreign spouse to the UK is a luxury reserved for those earning £18,600 a year or more. The Tories want to make it even more exclusive. 

Carolyn Matthew met her partner, George, in South Africa sixteen years ago. She settled down with him, had kids, and lived like a normal family until last year, when they made the fateful decision to move to her hometown in Scotland. Matthew, 55, had elderly parents, and after 30 years away from home she wanted to be close to them. 

But Carolyn nor George - despite consulting a South African immigration lawyer – did not anticipate one huge stumbling block. That is the rule, introduced in 2012, that a British citizen must earn £18,600 a year before a foreign spouse may join them in the UK. 

“It is very dispiriting,” Carolyn said to me on the telephone from Bo’ness, a small town on the Firth of Forth, near Falkirk. “In two weeks, George has got to go back to South Africa.” Carolyn, who worked in corporate complaints, has struggled to find the same kind of work in her hometown. Jobs at the biggest local employer tend to be minimum wage. George, on the other hand, is an engineer – yet cannot work because of his holiday visa. 

To its critics, the minimum income threshold seems nonsensical. It splits up families – including children from parents – and discriminates against those likely to earn lower wages, such as women, ethnic minorities and anyone living outside London and the South East. The Migration Observatory has calculated that roughly half Britain’s working population would not meet the requirement. 

Yet the Conservative party not only wishes to maintain the policy, but hike the threshold. The manifesto stated:  “We will increase the earnings thresholds for people wishing to sponsor migrants for family visas.” 

Initially, the threshold was justified as a means of preventing foreign spouses from relying on the state. But tellingly, the Tory manifesto pledge comes under the heading of “Controlling Immigration”. 

Carolyn points out that because George cannot work while he is visiting her, she must support the two of them for months at a time without turning to state aid. “I don’t claim benefits,” she told me. “That is the last thing I want to do.” If both of them could work “life would be easy”. She believes that if the minimum income threshold is raised any further "it is going to make it a nightmare for everyone".

Stuart McDonald, the SNP MP for Cumbernauld, Kilsyth and Kirkintilloch East, co-sponsored a Westminster Hall debate on the subject earlier this year. While the Tory manifesto pledge is vague, McDonald warns that one option is the highest income threshold suggested in 2012 - £25,700, or more than the median yearly wage in the East Midlands. 

He described the current scheme as “just about the most draconian family visa rules in the world”, and believes a hike could affect more than half of British citizens. 

"Theresa May is forcing people to choose between their families and their homes in the UK - a choice which most people will think utterly unfair and unacceptable,” he said.  

For those a pay rise away from the current threshold, a hike will be demoralising. For Paul McMillan, 25, it is a sign that it’s time to emigrate.

McMillan, a graduate, met his American girlfriend Megan while travelling in 2012 (the couple are pictured above). He could find a job that will allow him to meet the minimum income threshold – if he were not now studying for a medical degree.  Like Matthew, McMillan’s partner has no intention of claiming benefits – in fact, he expects her visa would specifically ban her from doing so. 

Fed up with the hostile attitude to immigrants, and confident of his options elsewhere, McMillan is already planning a career abroad. “I am going to take off in four years,” he told me. 

As for why the Tories want to raise the minimum income threshold, he thinks it’s obvious – to force down immigration numbers. “None of this is about the amount of money we need to earn,” he said. “We’re an easy target for the government.”

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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