Proposed by Councillor Andrew Hodson

Seconded by Councillor Les Rowlands

(1)  Council notes that some people are receiving more in benefits than those who work and with average earnings of £26,000 per annum.

(2)  While Council believes that support and help must be protected and improved for those who cannot work due to age or illness, Council does not believe it is right that the earnings of those who do work is sometimes less than the incomes of those who do not work.

(3)  Council welcomes the introduction by the Coalition Government of a ‘Benefits Cap’.

(4)  Council, however, is concerned that proposals by the Shadow Work and Pensions Secretary for a lower cap for claimants in the North West and other regions outside of London and the South East, are going too far and too fast.

Amendment submitted in accordance with Standing Order 7(2)

Proposed by Councillor Ann McArdle

Seconded by Councillor George Davies

Delete  everything and replace with the following:

Council notes that:

(1)  There is a need for a benefit cap. A cap is important because it can help ensure everyone has confidence that work pays and there is fairness in the benefits system.

(2)  The Tory led Coalition Government’s current proposals will lead to 20,000 people becoming homeless nationally. The Department for Communities and Local Government said this in a letter to Prime Minister’s Office. The DCLG also said that the cost of this could help to wipe out the £270 million the government said their benefit cap would save per annum and even end up costing more than it saves for council taxpayers.

(3)  Council believes there are alternatives in setting a benefit cap that are fairer for working people, do not have the same risk of homelessness, and save more money. This could be achieved by introducing a cap set in line with local differences in circumstances such as work incentives, earnings, house prices, and the consequent impact on homelessness.

(4)  Council accepts there is a strong case for local differences. Most of the benefits paid out under the cap will go towards housing costs and private sector landlords, but when these vary so much, it is simply not fair on working people to set the cap nationally. For example, £500 a week might buy a one bedroom apartment in central London, but in Wirral a similar sum would enable someone to buy a decent house in most areas.

(5)  One cap set nationally is not be fair for working people across the country. The levels of the cap should be set by an independent body of experts, just as the Low Pay Commission determines the minimum wage. This would not be going too far or too fast and the process might actually command cross-party support. The tests should be: fairness for working people, ensuring work pays, avoiding homelessness, and saving taxpayers money.

Amendment submitted in accordance with Standing Order 7(2)

Proposed by Councillor Stuart Kelly

Seconded by Councillor Phil Gilchrist

Add to end of paragraph (3):

Council recognises that considerable work is in hand as the Welfare Reform Bill progresses, to ease the transition for families and to provide assistance in hardship cases, exempt households that are entitled to working tax credit from the cap, provide transitional support to help manage families into more appropriate accommodation, and introduce further discretionary housing benefit of up to £80 million in 2013-14, and a further £50 million in 2014-15.

Insert new paragraph (4):

(4)  Council is anxious that those who require long-term support, have serious and uncontrollable life-threatening conditions, or whose condition deteriorates, should be placed in the Support Group for receipt of Employment Support Allowance. Further, it remains important to make sure that people get the benefit that they are entitled to, and that the work capability assessment process is right and takes particular account of fluctuating conditions. In addition, Council recognises that many people will receive six months’ statutory sick pay before they start to receive ESA, so they will be receiving benefits for 18 months. It is important that the Government continue the work that is being done to help employers to support employees when they become disabled or fall sick, and to help them stay in work where possible.

Renumber existing paragraph (4) as paragraph (5)

Having applied the guillotine in accordance with Standing Order 7(8) the Council did not debate this matter.

The mover of the motion agreed to accept the amendment moved by Councillor Kelly.

The amendment proposed by Councillor McArdle was put and lost (29:35) (One abstention)

The motion, as amended by Councillor Kelly’s amendment was put and carried (35:29) (One abstention).

Resolved (35:29) (One abstention) –

(1)  Council notes that some people are receiving more in benefits than those who work and with average earnings of £26,000 per annum.

(2)  While Council believes that support and help must be protected and improved for those who cannot work due to age or illness, Council does not believe it is right that the earnings of those who do work is sometimes less than the incomes of those who do not work.

(3)  Council welcomes the introduction by the Coalition Government of a ‘Benefits Cap’. Council recognises that considerable work is in hand as the Welfare Reform Bill progresses, to ease the transition for families and to provide assistance in hardship cases, exempt households that are entitled to working tax credit from the cap, provide transitional support to help manage families into more appropriate accommodation, and introduce further discretionary housing benefit of up to £80 million in 2013-14, and a further £50 million in 2014-15.

(4)  Council is anxious that those who require long-term support, have serious and uncontrollable life-threatening conditions, or whose condition deteriorates, should be placed in the Support Group for receipt of Employment Support Allowance. Further, it remains important to make sure that people get the benefit that they are entitled to, and that the work capability assessment process is right and takes particular account of fluctuating conditions. In addition, Council recognises that many people will receive six months’ statutory sick pay before they start to receive ESA, so they will be receiving benefits for 18 months. It is important that the Government continue the work that is being done to help employers to support employees when they become disabled or fall sick, and to help them stay in work where possible.

(5)  Council, however, is concerned that proposals by the Shadow Work and Pensions Secretary for a lower cap for claimants in the North West and other regions outside of London and the South East, are going too far and too fast.