PMQs: Cameron and Miliband clash over bonuses and benefits

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David Cameron has defended his government's decision to oppose EU plans for a bankers' bonus cap, after Labour leader Ed Miliband accused him of standing up for the wrong people.

The EU is proposing to cap bonuses to 100% of a banker's annual salary, or to 200% if shareholders approve.

David Cameron said the move could damage the competitiveness of London's financial centre.

But Mr Miliband accused him of being "totally out of touch", during prime minister's questions on 6 March 2013.

Chancellor George Osborne said Britain could not support the proposals at a meeting of EU finance ministers. There will be further talks, but all other countries backed the plan.

Leading with the subject at PMQs, Ed Miliband said the PM and the chancellor were "the only people who think it is a top priority to fight for bankers' bonuses".

He attacked government plans to cut housing benefit payments for people in social housing who have spare bedrooms, claiming disabled people would be hit hardest.

Mr Cameron retorted that bonuses were higher under Labour, with tougher rules and greater transparency brought in by the coalition government.

Attacking Labour's economic record in office, he likened the opposition leader to "the croupier in the casino when the banks went bust".

Turning to housing benefit, Mr Cameron said Mr Miliband was "wrong", and insisted the most vulnerable would be protected.

People who need round-the-clock care and families with severely disabled children would be exempt from the under-occupancy change, he told the Commons.

The PM said Labour had opposed "£83bn of welfare savings" adding that the party's only policy was to "put up borrowing".

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