Govt to press ahead with welfare plans despite Lords defeat

clock

The government will push ahead "in full" with plans to cap welfare payments for families despite a defeat in the House of Lords.

On Monday evening, peers voted in favour of excluding child benefit from a proposed household benefits cap of £26,000 a year. Critics, including former Liberal Democrat leader Lord Ashdown, argued that imposing the same cap on all families would penalise children. Ministers said they were "disappointed" with the result but intended to push through their plans "in full". Work and Pensions Secretary Iain Duncan Smith claims the cap on out-of-work benefits would save about £600m towards deficit reduction. But Liberal Democrat, Labour and crossbench peers allied to back a Church of ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax Planning

Transact launches flexible reversionary trust ahead of 2027 IHT changes

Transact launches flexible reversionary trust ahead of 2027 IHT changes

Strengthening onshore and offshore bond offering

Isabel Baxter
clock 11 June 2026 • 2 min read
HMRC consults on extending UTT regime 'targeting' wealthy individuals

HMRC consults on extending UTT regime 'targeting' wealthy individuals

To cover stamp duty, National Insurance, IHT and CGT

Isabel Baxter
clock 13 May 2026 • 2 min read
Probate cases taking nearly two years rise by 131%

Probate cases taking nearly two years rise by 131%

Increased risk of interest accruing on IHT

Jaskeet Briah
clock 07 April 2026 • 2 min read