The government has urged MPs to back a 1% cap on annual rises in working-age benefits and some tax credits, arguing it is vital to cutting the deficit.

Work and Pensions Secretary Iain Duncan Smith said Labour - which is opposing the cap - was "in denial" over the state of the economy.

But Labour argued the cap would be a "hit and run" on working families.

Benefits have historically risen in line with the rate of inflation. The Commons vote is due at 19:00 GMT.

The House of Commons is debating the Welfare Benefits Uprating Bill, which would keep benefit rises to 1% for three years from next April.

'Compassion'
The coalition argues this is necessary to reduce the deficit, and is fair at a time when public sector pay is being capped and salaries in the private sector are rising below the rate of inflation.

But Labour, which opposes the cap, says it will result in a real-terms cut in support for millions of working people.

Benefits set to be capped

Jobseeker's Allowance
Employment and Support Allowance (note: this is a benefit for disabled people)
Income Support
Elements of housing benefit
Maternity allowance
Sick Pay, Maternity Pay, Paternity Pay, Adoption Pay
Couple and lone parent elements of working tax credits and the child element of the child tax credit

Bank bail-out adds £1.5 trillion to debt

Britain's public debt is set to soar from under £1 trillion to more than double that landmark figure when official figures are updated this month to take into account the impact of the banking bailout.

Iain Duncan Smith said pensioners will get plenty of warning in a manifesto pledge "if there are going to be any changes made" to their benefits, which include free bus passes, television licences and prescriptions.

His comments are likely to be seen as another strong hint that universal benefits for pensioners could be targeted for cuts after 2015.

The Cabinet minister also said the next generation of retired people will need to save more to make sure they do not have any "extra dependence" on the state beyond their basic pension.

In an unexpected act of leniency by regulators, banks have been given until 2019 to build up their cash buffers. The stringent new rules (also known as the Basel III bank capital and liquidity accord) were brought in by the Basel Oversight Committee of banking supervisors to safeguard banks from future economic shocks. Or rather, make sure that taxpayers no longer have to foot the bill for future ‘runs’ on the banks (a la Northern Rock or Lehman). Under these regulations, banks need to have enough cash in the vaults to tide them over for a month.

I'll put this in this section as it's open for discussion if anyone wishes to do so.

I doodled this on the 19th Dec




Predictions Scorecard
Cathar 0 - Me 1

Mind you the real challenge is going to be living long enough to qualify for anything like a retirement.

We're all going to work like good slaves until we drop dead and get soylent greened to feed the benefit system.