All eyes on Lords for benefits cap vote

By Alex Stevenson

Plans to prevent benefit claimants receiving more than £26,000 a year could prompt a coalition rebellion in the Lords later.

Paddy Ashdown has indicated he is prepared to vote against the government, in what would be a first for the former Liberal Democrat leader.

He told Sky News on Sunday that the moves were "completely unacceptable".

Lord Ashdown insisted "this legislation is in its present form I won't accept," before expressing a hope that work and pensions secretary Iain Duncan Smith could mitigate the impact of the changes through transition arrangements.

Deputy prime minister Nick Clegg insisted the "basic principle" of a cap on benefits preventing any claimant from receiving over £500 a week would not be shifted, however.

The Lib Dem leader conceded that transitionary arrangements could be looked at, though, in an interview on BBC1's The Andrew Marr Show.

Coalition plans to reform the benefits system have encountered extensive opposition in the Lords so far this month, with changes to the disability living allowance prompting three defeats in one sitting.

Leaked government correspondence suggests the number of homelessness 'acceptances' could double the number already expected as a result of the benefits reforms to total 40,000.

There are also concerns the total cost of the move could end up costing more than the estimated £270 million of savings.

A letter from communities and local government secretary Eric Pickles' office, published by the Observer last July, warned that the savings do not take into account the additional costs to local authorities through homelessness and temporary accommodation.

"In fact we think it is likely that the policy as it stands will generate a net cost," it stated.

Senior Church of England figures have tabled amendments to the bill in the Lords, arguing that the most vulnerable in society will be hit by the changes.

Mr Duncan Smith hit out at the bishops in an interview with yesterday's Sunday Times.

"The question I'd ask these bishops is, over all these years, why have they sat back and watched people being placed in houses they cannot afford? It's not a kindness," he argued.

"I would like to see their concerns about ordinary people, who are working hard, paying their tax and commuting long hours, who don't have as much money as they would otherwise because they're paying tax for all of this. Where is the bishops' concern for them?"

The government is unlikely to be defeated later because Labour peers will back the reforms.

"We support the principles and the responsibility to take a job if you can work," a party spokesman said.

"But we will be seeking to amend the bill, to bring a compromise between the bishops and the government because we don't think council tax payers should be hit with a massive bill for homelessness."