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MPs to vote on working-age benefit increase cap

MPs are set to vote today on controversial plans to put a 1% cap on annual rises in working-age benefits until 2016.

Among the benefits that will be capped are: maternity allowance, sick pay, maternity pay and paternity pay.

Benefits have historically risen in line with the rate of inflation, and increased by more than 5% in 2012-13.

The coalition says public sector pay is capped at 1% and benefits should not be rising at a faster rate than wages.

Ahead of today's vote, Labour leader Ed Miliband said the move showed the Government had the wrong priorities, contrasting the planned cap with its decision to cut the top rate of tax for those earning more than £150,000 a year.

"By cutting the support that working families get - and more than 60% of those affected by the changes we are voting on are working families - is going to be handicapping and stopping working families who want to get into work and do the right thing," he said.

Prime minister David Cameron and deputy prime minister Nick Clegg have said they do not "relish" imposing the cap but argue billions of pounds of further savings are needed, and have challenged Labour to come up with an alternative.

Work and pensions secretary Iain Duncan Smith said the move was part of coalition plans to deal with the deficit. He said: "We don't take this decision lightly but we have to get this deficit under control or this country will be bankrupt, like Greece and like Spain, and we'll have huge borrowing costs."

Shadow work and pensions secretary Liam Byrne said: "Why should you give back £3 billion to Britain's billionaires and take £6 billion away from predominantly working families?"