Bloomberg News

King Says Stimulus Case Grows With Stepped Up Crisis Plan

June 24, 2012

Prime Minister David Cameron will propose cuts to some housing benefit for people aged 25 and under, the Mail on Sunday reported, citing an interview.

Cameron will say in a speech tomorrow that the U.K. will cut most of the 1.8 billion-pounds ($2.8 billion) in housing benefit paid to 380,000 people, and will stop 70 pound weekly payments to the unemployed who refuse to look for work or have a resume, the paper said.

“We are spending nearly 2 billion pounds on housing benefit for under-25s -- a fortune,” the paper reported him as saying. “We need a bigger debate about welfare and what we expect of people. The system currently sends the signal you are better off not working, or working less.”

“We are sending out strange signals on working, housing and families,” he said “At the moment the system encourages people not to work and have children, but we should help people to work and have children.”

He said there should be more tax collection and the wealthy should pay more tax, while some arrangements to avoid paying should be stopped.“We need a crackdown on aggressive schemes,” he said.

“If the facts change, it’s braver to make changes,” he said, when asked about some of the government’s recent policy changes. “No one thinks this is a weak government.’

To contact the reporter on this story: Jennifer Ryan at

To contact the editor responsible for this story: Craig Stirling at

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