The government is expected to make a series of concessions on its controversial £26,000 household benefits cap to win over wavering Liberal Democrat MPs. Iain Duncan Smith, the work and pensions secretary, is expected to agree that a discretionary fund should be established to ease the burden on families who could be made homeless at a sensitive time in their children's education. The move comes as Labour seeks to work with the Lib Dems - whose former leader Lord Ashdown voted to exempt child benefit - on agreeing a local rate for the cap. In a letter to Nick Clegg, the shadow work and pensions secretary, Liam Byrne, says a local cap could ensure that 20,000 people avoid being made homeless by the changes. Read more on the Guardian website.
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