Welfare wars

George Osborne is refreshingly uninterested in his public image, believing that he will be judged by the success (or otherwise) of his economic policies. So when the Chancellor pops up to give a speech, he spends little time trying to mask his underlying aim — which is usually to sock it to Ed Balls, his opposite number. He is a Chancellor-cum-strategist who weighs every policy for the damage it could inflict upon his opponents. And on the issue of welfare, he sees an opportunity to strike.

Introducing a benefits cap has been the single toughest policy introduced by this coalition government. It is also the most popular with the public, and the Chancellor seems to find this intoxicating. Polls show that even a majority of Labour voters support the general principle: that no family on benefits should receive more than the average British family earns. Osborne once went so far as to cross the floor of the Commons to thank Balls for voting against the reform — the shadow chancellor’s opposition gave him clear political advantage. This week Osborne has said he wants to cut another £12 billion from welfare, and challenged Labour to disagree.

Drawing dividing lines is the basic task of any political strategist, but the cleavage now opening up runs through the heart of the Conservative party. Iain Duncan Smith, who is in charge of welfare reform, is appalled at the Chancellor’s apparent relish in imposing the cuts — uncomfortable for Labour, certainly, but even more uncomfortable for those who are affected. To the Work and Pensions Secretary this is about saving lives, rather than saving money — that is the premise on which the Conservatives’ social justice strategy is founded. But Mr Osborne is making clear he sees the matter in a very different way.