George Osborne gave a speech on welfare reforms today.
“Those who campaign against a cap on benefits for families who aren’t working are completely out of touch with how the millions of working families, who pay the taxes to fund these benefits, feel about this,” he said.
Mr Osborne said “people don't want a welfare system that keeps them in poverty”.
“Most people on benefits want to work,” he said. “They want a welfare system that helps them into work; that lifts them up, that gives them pride, self-worth and dignity.
“That’s why we’re building a benefits system that means you’re always better off in work.”
Unitegeneral secretary Len McCluskey said: “Very rarely does George Osborne make set-piece speeches to justify his policies that have brought the economy to the edge of a triple dip recession.
“At the same time as the UK economy is flatlining, he is the architect of the so-called welfare reforms that are sucking hope from millions of people, some of the most disadvantaged and vulnerable in our country.
“Even his own backbench MPs want this economic Dracula to go back into his box and for William Hague to take-over in a desperate bid to save their electoral skins.
“This speech was littered with distortions and intended to do one thing: divide.
“The sight of the chancellor exhorting the low waged in work to turn their backs on the poor out of work has to mark a new low for one of the highest offices in the land.
"We should remember that 60% of those on benefits are in work, paying their taxes.
"Low wages, not high welfare, are the problem - wages have not risen in real terms since 2003, while the greedy boardroom elite pocket excessive pay and perks.”
Mr McCluskey called for an immediate £1-an-hour increase in the national minimum wage to help the lowest paid.
“Housing benefit has risen because private rental sector is wildly out-of-control and landlords have grown very fat on the lack of affordable public housing,” he added.
“Of course we need a welfare system that works but that needs to be part of a sound economic policy, one which would put money into people’s wallets and purses to boost domestic demand and supports a coherent manufacturing policy to increase exports, underpinned by the creation of skilled jobs and plentiful apprenticeships.”
In his speech Mr Osborne said nearly three million more people who will pay no income tax when the increase in the personal allowance to £10,000 comes into force next April.
“You won’t pay any income tax at all on the first £10,000 you earn,” he said.
“That’s £700 pounds less in tax for working families than when we came into office.
“And let me make clear: we’re not doing it by borrowing more money – meaning you’ll pay for it down the road.
“No, we can afford this because as a country we have taken some difficult decisions together on public spending, and it’s only right that the British taxpayer gets rewarded for that.”