How the Lib Dems broke their promise to block new welfare cuts

The party vowed to block further welfare cuts but the seven-day wait for benefits amounts to a £245m cut.

Before the Spending Review, the Lib Dems repeatedly stated that they would accept no further cuts to welfare. Danny Alexander said in February 2013: 

We've got no plans at all to go back to the welfare budget as part of that process [the Spending Review]. What I'm focused on is finding that £10 billion or so from within the spending the government departments do.

I've got no plans to reopen the welfare issue. We agreed significant measures in the autumn and we're legislating for those at the moment. The balance has to be found from departmental budgets. Everyone's got to play their part.

More recently, Nick Clegg said that he was prepared to consider new cuts but only if George Osborne began by removing benefits, such as Winter Fuel Payments and free bus passes, from wealthy pensioners. "I believe that if you’re going to reopen welfare, it’s only fair to work at the top and work down, not start at the bottom and work up," he said

When Osborne and Cameron responded by reaffirming the Tories' 2010 pledge to protect all pensioner benefits, it appeared welfare spending was off the table. The Chancellor had already taken £21.6bn from the mostly poor and would take no more. 

But when he addressed the Commons yesterday, Osborne did announce further benefit cuts - and he started at the bottom. The new seven-day wait before the unemployed can claim benefits will reduce spending by £245m in 2015-16 (and £765m by 2018). Though some may seek to present it as a "reform", it is a cut. The money that claimants lose from having to wait a week for their benefits (which will force thousands more to turn to food banks) will not be backdated; it has gone for good. The introduction of tougher interview requirements is also expected to reduce spending (by £120m in 2015-16), presumably since those who fail to turn up (often with good reason) will be sanctioned.

It's true that Osborne also announced plans to remove Winter Fuel Payments from pensioners who live in hot countries (defined as those with "an average winter temperature higher than the warmest region of the UK") but this hardly qualifies as a significant reduction; it will save just £30m a year. 

Clegg insisted he would only accept new welfare cuts if the majority of savings came from the wealthy, but, once again, it's the poorest who've been hit. 

Danny Alexander and Nick Clegg at last year's Liberal Democrat conference in Brighton. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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