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Benefits Uprating

I know that the right hon. Gentleman has been consistent in his support for welfare reform, albeit, as he has said, in the context of saving rather than otherwise. We believe that not only the welfare reform proposals but all that we are seeking to do will, on balance—his words, not mine—be cost-neutral. We have said, however, that at least during the interim period, when savings can be made we want to work closely with local authorities to come up with flexibilities that will enable them to respond to the requirements of their areas. Not all the savings will be brought into the centre in the first instance. In the broader context of all that the Department is seeking to do, as I have announced and others have announced previously, there will be an additional £1.3 billion because of the economic downturn—and that is £1.3 billion that could not be counted on as an absolute if the policies of the right hon. Gentleman's party were pursued. My right hon. Friend the Secretary of State made that point yesterday.