The debate over benefit uprating will run and run because both sides think they are winning. George Osborne thinks the public resent generous benefits rises. Liam Byrne and Ed Balls want to call this a ‘strivers tax’ and think blue collar workers will fall into their arms. Byrne told Coffee House yesterday that Labour will be hurt opposing to the Welfare Uprating Bill.
I understand that the Shadow Cabinet reached its decision after YouGov’s polling showing C2DE voters – the three lowest socio-economic groups – saying benefits should have been increased in line with inflation. Osborne’s Bill would increase welfare by 1pc, behind expected inflation. Some 42 per cent of C2DE respondents said it was wrong, 28 said it was right, 15 per cent proposed no increase at all on benefits. Polling after Ed Balls had confirmed the party’s position showed 59 per cent of voters backed Labour’s opposition. Hence the smile on Balls’ face
I understand that Labour believes that families on working tax credits (also affected by the real-terms freeze) could turn against the Conservatives in key marginal constituencies.
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