Iain Duncan Smith

IDS champions ‘worst-off’ in Treasury fight

IDS champions ‘worst-off’ in Treasury fight

By Alex Stevenson

Iain Duncan Smith has pledged his determination to protect the worst-off as negotiations over his welfare reforms with the Treasury continue.

Tensions with George Osborne are running high as talks over the comprehensive spending review enter their final stages.

Mr Duncan Smith has denied claims of a feud with the chancellor, telling Sky News yesterday the pair are “very close” on welfare reform.

But he appeared to acknowledge in an evidence session with the work and pensions committee this morning that he was in a tough fight with the Treasury to secure the money he needs to shake up the welfare system.

He faced sustained questioning on the issue from Labour MP Karen Buck, who pointed out the emergency Budget significantly increases the number of households who will be subjected to marginal tax rates of deduction.

Mr Duncan Smith admitted this was the case – but pointed out it would not be when his proposed universal credit was taken into account.

“In the process of the spending review our debates, discussions, conversations, have made the point the universal credit… has a massive importance within this,” he said.

“Without it you could end up in a different situation, going in the opposite direction.”

Ms Buck suggested it was “perverse” that Mr Duncan Smith was working with a Budget which “takes you backwards”.

“I would urge you to look across the balance of the spending review and the Budget,” the work and pensions secretary replied.

“We’re halfway through the process. It’s important for us to get to October 20th.”

He added: “I certainly did not come into this job to see the worst off suffer more, that’s the key.”