MPs back 1% cap on benefit rises

The government has won a crucial vote in Parliament on plans to limit annual increases in working-age benefits to 1% for the next three years.

MPs rejected a Labour bid to block the proposals by 328 votes to 262 after five hours of heated debate.

Several Lib Dem MPs had said they would defy the coalition by joining Labour.

Labour argues that millions of low-income families will be worse off but ministers say benefits should not be going up at a faster rate than wages.