Benefits rates may depend on where you live, No 10 suggests

[dutchman]

Benefits rates could vary according to where someone lives, under welfare changes David Cameron is considering.



No 10 says the prime minister wants to look at whether it still "makes sense" to set payments at a national level, given differing regional pay levels.

Although he dropped the idea from the final text of his speech on welfare, No 10 says it is among ideas which also includes cutting benefits over time.

The PM said he wanted to debate the ideas for the next Tory manifesto.

But he said he also hoped that his coalition government partners, the Lib Dems, might agree with some of the ideas so they could be brought in before the next election, which is due in 2015.

Mr Cameron's speech is being seen as an attempt to reconnect with disgruntled Tory backbenchers who have accused him of allowing the Liberal Democrats to water down traditional party values.

Other ideas raised included:

Reduce the amount of benefit paid to people over time
Expecting people on benefits to be able to read, write and count
Out-of-work benefits linked to wages rather than inflation, if wages are lower
A cap on the amount people can earn and still live in a council house
Reduce the current £20,000 housing benefit limit
Stopping the out of work being better off by having children
Consider paying some benefits "in kind" rather than in cash
Expecting parents on income support to prepare for work while children have free nursery care
Getting the physically able to do full-time community work after a period out of work
Sickness benefit claimants should take steps to improve their health

Regional rates of benefits - which would presumably see people in more affluent regions getting higher payments than in poorer regions - would be likely to prove controversial.

No 10 stressed, an hour before Mr Cameron's speech, that no decision had been taken but the PM wanted to look at whether "it makes sense if you set all benefits at the national level or whether there should be some local or regional element".