The poorest and the disabled are hit hardest by the benefit cuts

The government's Impact Assessment shows that the poorest 10 per cent of households lose the most from the decision to raise benefits by just 1 per cent.

Just a few hours before MPs started debating the coalition's Welfare Uprating Bill, which will impose a cap of 1 per cent of benefit increases for the next three years, the government finally released its Impact Assessment (IA) of the legislation.

The document confirms that the poorest will be hit hardest by the decision not to raise benefits in line with inflation. As the table below shows, the poorest tenth of households lose the most in real terms (2 per cent of net income a week), while the second poorest tenth lose the most in cash terms (£5 a week).

The assessment also shows that, contrary to the government's assurances, the disabled will be affected. In fact, households with a disabled member are more likely to lose out than non-disabled households (34 per cent compared to 27 per cent). This is because, in the words of the IA, "those who report themselves as being disabled are more likely to qualify for those benefits which are affected by the policy change". Given this finding, perhaps it's not surprising that the Department for Work and Pensions waited until the last possible moment to release its assessment.

We also learn that lone parents will lose more than any other family type (£5 a week), since "they have a lower employment rate than average and also often qualify for in-work support", that women are more likely to be affected than men (33 per cent compared to 29 per cent) and that, in total, 30 per cent of all households will be affected.

Work and Pensions Secretary Iain Duncan Smith will defend the government's Welfare Uprating Bill in the House of Commons today. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Dan Kitwood/Getty
Show Hide image

I believe only Yvette Cooper has the breadth of support to beat Jeremy Corbyn

All the recent polling suggests Andy Burnham is losing more votes than anyone else to Jeremy Corbyn, says Diana Johnson MP.

Tom Blenkinsop MP on the New Statesman website today says he is giving his second preference to Andy Burnham as he thinks that Andy has the best chance of beating Jeremy.

This is on the basis that if Yvette goes out first all her second preferences will swing behind Andy, whereas if Andy goes out first then his second preferences, due to the broad alliance he has created behind his campaign, will all or largely switch to the other male candidate, Jeremy.

Let's take a deep breath and try and think through what will be the effect of preferential voting in the Labour leadership.

First of all, it is very difficult to know how second preferences will switch. From my telephone canvassing there is some rather interesting voting going on, but I don't accept that Tom’s analysis is correct. I have certainly picked up growing support for Yvette in recent weeks.

In fact you can argue the reverse of Tom’s analysis is true – Andy has moved further away from the centre and, as a result, his pitch to those like Tom who are supporting Liz first is now narrower. As a result, Yvette is more likely to pick up those second preferences.

Stats from the Yvette For Labour team show Yvette picking up the majority of second preferences from all candidates – from the Progress wing supporting Liz to the softer left fans of Jeremy – and Andy's supporters too. Their figures show many undecideds opting for Yvette as their first preference, as well as others choosing to switch their first preference to Yvette from one of the other candidates. It's for this reason I still believe only Yvette has the breadth of support to beat Jeremy and then to go on to win in 2020.

It's interesting that Andy has not been willing to make it clear that second preferences should go to Yvette or Liz. Yvette has been very clear that she would encourage second preferences to be for Andy or Liz.

Having watched Andy on Sky's Murnaghan show this morning, he categorically states that Labour will not get beyond first base with the electorate at a general election if we are not economically credible and that fundamentally Jeremy's economic plans do not add up. So, I am unsure why Andy is so unwilling to be clear on second preferences.

All the recent polling suggests Andy is losing more votes than anyone else to Jeremy. He trails fourth in London – where a huge proportion of our electorate is based.

So I would urge Tom to reflect more widely on who is best placed to provide the strongest opposition to the Tories, appeal to the widest group of voters and reach out to the communities we need to win back. I believe that this has to be Yvette.

The Newsnight focus group a few days ago showed that Yvette is best placed to win back those former Labour voters we will need in 2020.

Labour will pay a massive price if we ignore this.

Diana Johnson is the Labour MP for Hull North.