Tories 'can fight poverty best'

The Conservatives are now "best-placed to fight poverty in our country" and Labour's "big government" has failed, Tory leader David Cameron has said.

In a speech in London, he said the "rapid expansion" of the state under Labour had not reduced inequality.

Massive spending on health and welfare had produced only "a measure of success in lifting those just below the poverty line to just above it", he said.

Labour's Yvette Cooper said it marked a "return to the Thatcherite approach".

Delivering the annual Hugo Young lecture, Mr Cameron argued for less state intervention and a bigger role for voluntary bodies.

He said the "big government" approach made people dependent on the state and trapped them in poverty.

"Far too many of the people I see in my constituency surgery are, thanks to the state, financially better off if they do the wrong thing "

He said its "moral failure" was to create a system where it paid not to work and which penalised those who had worked and saved by forcing them to sell their home for residential care.

Huge welfare spending since 1997 had not reduced inequality, youth unemployment or social mobility and the state had become "broadly ineffective", he said.

Society 'atomised'

He said the "harm" done by means-tested benefits included lowering incentives to work.

"Far too many of the people I see in my constituency surgery are, thanks to the state, financially better off if they do the wrong thing than if they do the right thing," Mr Cameron said.

He argued that the government's methods to help the poor had caused an "atomisation" of society, breaking down natural bonds of duty and responsibility and replacing them with a reliance on the state.

And he repeated pledges to "end the couple penalty in the tax credits system" by increasing them for couples who stayed together.

"Mr Cameron's speech is well worth studying for anyone who wants to understand what a future Conservative government might do"

Read Nick's thoughts in full

He said he did not want the state to withdraw from society - but wanted to use it to "remake society" by supporting activists and encouraging more people to get involved in improving their communities.

He said he shared Labour's "aspiration" of wanting to abolish child poverty by 2020 but also wanted to deal with the gap between the "bottom and the middle" of society.

Mr Cameron announced he would nominate Debbie Scott, who runs Tomorrow's People - a charity which helps unemployed youngsters without qualifications or skills into work - for a peerage to join the Conservative team in the House of Lords.

For Labour, Work and Pensions Secretary Yvette Cooper said: "David Cameron is calling for the state to withdraw, leaving people to fend for themselves and charities and community groups to pick up the pieces.

"This is a return to Thatcherism, or even 19th century liberalism - cutting back on government action on poverty, yet still backing tax cuts for the wealthiest estates."

At a separate event with business leaders Chancellor Alistair Darling said the government could not "walk away" from its responsibility to help.

He said he would be unveiling his pre-Budget report in December and it would show government had a major role to play.

Liberal Democrat spokesman Steve Webb said it was all part of trying to "rebrand" the Conservative Party and change their "nasty party" image.

"This is really trying to be the cuddly party but when in power, the Conservatives saw child poverty double," he said.

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