Lib Dems propose radical anti-poverty plans

12.48.00pm UTC (GMT +0000) Wed 19th Sep 2007

The Liberal Democrat Autumn conference today backed radical new measures to reduce poverty and tackle inequality in Britain. The plans aim to reverse Gordon Brown's dependency culture by giving people educational and employment opportunities, as well as incentives to work and save.

Five million people will be lifted out of relative poverty, with 10 million fewer means-tested benefits in payment, by 2020.

The proposals contained in the policy document Freedom from Poverty, Opportunity for All: Policies for a fairer Britain include:

• Introducing a 'pupil premium', with £1.5bn extra targeted at the children with the greatest need

• Reforming Tax Credits by ending the overpayments crisis and taking higher earners out of the system all together

• Increasing Child Benefit by around £5 per family per week, taking 150,000 children out of poverty

• Replacing Job Centre Plus with a new 'First Steps' agency to be a single one-stop-shop for all benefit and tax credit claims, while outsourcing properly funded employment support to the private and voluntary sector

• Immediately restoring the earnings link to the basic state pension and in the long run introducing a citizens' pension

• Establishing an Independent Commission on Public Sector Pensions to ensure that they are fair and affordable - with any savings re-invested in a higher state pension

Commenting, Liberal Democrat Shadow Work and Pensions Secretary, Danny Alexander MP said:

"Under Gordon Brown, Britain remains a society of massive inequalities of both income and opportunity.

"Our radical new agenda rejects Gordon Brown's blueprint for a state of dependency, where the spread of mass means-testing undermines incentives to work, save and even form stable families.

"Our proposals for Tax Credits will give people an assurance that what is given to them will stay with them, and by removing millions from means-testing we will strengthen incentives to progress in work.

"In combination with our tax proposals, we are able to both tackle poverty and ensure the vast majority of families will keep more of their income, as they move on to better paid work.

"Our new employment policies will take the task of finding people work away from failing job centres, and give it to local charities and companies with much better prospects of finding people permanent employment.

"Labour has failed to provide real opportunity for the most disadvantaged. Britain is becoming divided into two nations. With these policies, the Liberal Democrats are declaring war on inequality."

Commenting further, Liberal Democrat Shadow Children, Schools and Families Secretary, David Laws MP said:

"Our pupil premium would help to tackle disadvantage where it matters most - in education from the very first days in school. Our aspiration is that the most deprived pupils have the same financial backing as those privileged enough to go to private school."