8 January 2014 Last updated at 21:57

Minimum wage set to become pre-election battleground

By Iain Watson Political correspondent, BBC News

A cleaner sweeps the steps outside the venue of the 2013 Conservative conference

When the minimum wage was introduced by Labour in 1999, the Conservatives opposed it and suggested it could cost jobs.

Their position subsequently changed, but a group of Conservative MPs - some on the right of the party - believe that "grudging support" for the measure doesn't strike the right tone for a party which claims to be on the side of hard working families.

Some are urging the prime minister to make a speech setting out why his party had been wrong not to introduce it themselves in order to "kill off a negative".

They see parallels with David Cameron's backing for the NHS, another Labour creation, before the last election.

The then opposition leader stated he could sum up his political priorities in three letters - N.H.S - and then attempted to steal a march on Labour by pledging to increase the health budget.

Past errors

These Conservative backbenchers want to see a similar approach to helping the low paid - a "clear the way" speech recognising past errors, followed by an above-inflation increase in minimum wage rates.

And now more influential figures are making their voices heard.

Sources close to the Work and Pensions Secretary Iain Duncan Smith suggest he is in favour of a significant increase - partly because, with the chancellor keen to make further welfare savings, the higher the minimum wage then the lower the expenditure on tax credits to top up low incomes.

The business minister Matt Hancock - a former adviser to George Osborne - previously agreed to an increase in the lower apprentice rate, and is likely to favour an across the board increase now.

Another minister close to the Chancellor, Sajid Javid, told the BBC on Wednesday that the minimum wage "is about 10% lower in real terms, I think, than where it was in 2008" and there was a "a strong case to look at it".

And indeed it is already being examined.

Review

Last September, the business secretary Vince Cable asked the Low Pay Commission - which recommends minimum wage rates - to look at what economic conditions would be needed for a higher than usual rise.

The Commission will report to him - and to David Cameron and Nick Clegg - by the end of next month.

It is well known that Mr Cable wants to see the minimum wage rise as the economy recovers.

However, sources close to the business secretary are making it clear that he has no intention of agreeing to a pre-election inflation-busting boost, unless specifically recommended by the experts, and not simply by fellow politicians.

He is far more likely to accept whatever the Commission recommends and doesn't believe the Chancellor will try to over-rule him.

That's not to say that the Conservatives couldn't pledge a much bigger increase in their next manifesto.

Political ground

But the Lib Dems see the current debate amongst their coalition partners as an attempt to move on to their ground, having alienated more moderate support over Europe and immigration, and aren't minded to help them out just yet.

But some Conservatives say there is a way of appealing to those on low incomes without over-ruling the Low Pay Commission if it opts for a modest rise this year.

These MPs are pressing the Treasury to look at the net - rather than gross pay - of those on the minimum wage.

From April the first £10,000 of income will be tax free but workers begin paying national insurance - which to many, feels like a tax - at the lower income of £7,775.

By raising the national insurance threshold to £10,000 too by the time of the election the Conservatives would be able to say that all those on the minimum wage were better off. That of course would cost, not save, money.

'Top-up'

But there are calls, too, for a minimum wage "top up" in areas of high costs and higher average earnings paid for by employers, not government.

Labour politicians have also talked of backing a significant rise in the minimum wage, but without specific figures and having a higher "minimum" in some sectors of the economy.

But their main thrust is likely to be on pressing companies to pay a higher "living wage" - currently £7.65 an hour, rather than the minimum adult hourly rate of £6.31.

A future Labour government would be likely to insist that private employers which benefit from public sector contracts pay their employees this higher figure, or above.

Some Conservative strategists believe Labour would be on the back foot if the current government backed a significant increase for the low-paid.

For their part, Labour strategists believe the debate demonstrates that David Cameron is being forced to fight on their territory - that is, he's battling over the cost of living and not the improving state of the economy.

Politics Live

13:40: SNP ready to 'work with' Labour The World at One BBC Radio 4 Presented by Martha Kearney

Angus Robertson, who is the SNP's leader at Westminster, makes clear he thinks it's obvious why Labour won't rule out a deal with the nationalists. "If the numbers are such that the Labour cannot command a majority in the House of Commons without other parties, they will have to work with the SNP," he says. "Voters are very well aware that a vote for the SNP will get you the SNP. We've said we are prepared to work with Labour and the Liberal Democrats."
13:34: SNP's PMQs verdict The World at One BBC Radio 4 Presented by Martha Kearney

The SNP's Angus Robertson wasn't impressed at all by Ed Miliband's choice of questions in today's PMQs. "If I had the opportunity to raise six questions which the leader of the opposition did, I would be raising questions about austerity, that effect the man and woman on the street, rather than the debates," he says. Yvette Cooper replies that Mr Miliband raises all sorts of issues in PMQs.
13:32: 'Weaselly' The World at One BBC Radio 4 Presented by Martha Kearney

David Cameron is behaving "shamefully", shadow home secretary Yvette Cooper tells Wato. "It's weaselly," she adds. "The problem is the prime minister is still running away from the debates I think the public are entitled to see." Defence minister Penny Mordaunt says the PM is "clearly not" a "shrinking violet", and therefore Labour's criticisms won't "stick".
13:30: Debates debate House of Commons Parliament

In the Commons, the DUP's Nigel Dodds is now speaking in his party's opposition day debate about the general election television debates.
13:28: 'Appetite for debates' The World at One BBC Radio 4 Presented by Martha Kearney

Michael Lyons, the former chairman of the BBC Trust, tells Wato there is a very real public appetite for TV debates. He says it is clear the broadcasters have done their best to find a solution after "quite a challenge" - although admits there was a bit of a "dog's dinner" in some respects. He says a head-to-head debate between David Cameron and Ed Miliband is something "the public would want to see".
@edgingtont Tom Edgington, BBC journalist

tweets: Former BBC Chairman Sir Michael Lyons describes Lord Grade's #tvdebate comments as "audacious" @bbcworldatone #wato
13:20: Labour on defence The World at One BBC Radio 4 Presented by Martha Kearney

Yvette Cooper says the Labour Party doesn't support unilateral disarmament - the UK should continue to have a deterrent. Angus Robertson says 75% of Labour candidates support SNP policy on not renewing Trident and there is room for a "progressive alliance" on that front.
13:19: SNP on defence The World at One BBC Radio 4 Presented by Martha Kearney

The SNP's Angus Robertson says the MoD should not pretend to spend 2% on defence by including pensions and other non-relevant costs. He says Trident "squeezes out" spending on other areas.
13:16: Labour on defence The World at One BBC Radio 4 Presented by Martha Kearney

Yvette Cooper, the shadow home secretary, says supporting the armed forces is important. The Labour MP says she doesn't see how the Tories could meet their warm words and aspirations given the scale of cuts they plan after the election. Her party won't do what the Tories are planning, she says - but she won't commit to the 2% pledge in the next Parliament either.
13:16: Meeting the target The World at One BBC Radio 4 Presented by Martha Kearney

Penny Mordaunt, the Tory MP, says the government should be judged by its record - so far, the 2% pledge has been kept. There will be a comprehensive spending review after the election, but those who care about the defence spending can take comfort from pledges already made, she adds. She hopes the 2% threshold will continue to be met.
13:15: 'Creative accounting' The World at One BBC Radio 4 Presented by Martha Kearney

What counts is real military activity, not creative accounting says Anders Fogh Rasmussen. It follows newspaper reports that David Cameron has asked Oliver Letwin to find ways to meet the 2% target while spending less by including the money spent on war pensions and the intelligence budget in the 'defence spending' total.
13:13: 'Drastic changes' The World at One BBC Radio 4 Presented by Martha Kearney

Anders Fogh Rasmussen says we're in a "new security environment" which has seen "drastic" changes after Russia's actions in Ukraine. We need to strengthen national defences, he says, and that will cost money. He says he believes the UK will continue to meet the commitment of spending 2% of GDP on defence.
13:11: Defence spending The World at One BBC Radio 4 Presented by Martha Kearney

Defence spending is being discussed by WATO. Anders Fogh Rasmussen, the former head of Nato, says the 2% of GDP figure is important - it's about sharing the burden between members. All 28 allies signed up to the pledge to reach the benchmark over the next decade and David Cameron has assured him the UK will stay above the 2% figure, he adds.
13:03: PMQs recap
Here's a recap of the highlights from this week's PMQs
- Ed Miliband focused his questions on the ongoing row over the TV debates
- The leader of the opposition suggested David Cameron had lost his nerve, claimed he was "worried he might lose again" and accused him of "chickening out"
- The prime minister insisted he would be prepared to hold a debate on 23 March and said he wanted to talk about "the country", not a "television programme"
- Mr Cameron's main attack against the Labour leader repeated the claim that Alex Salmond could help Mr Miliband into Downing Street
- UKIP MP Douglas Carswell, previously treated by leniently by the party he defected from, was booed by Tory MPs during his question on immigration
- The prime minister denied he is backtracking on the government's 2% defence spending pledge following a question by Labour's Gisela Suart
13:03: 'Furious exchanges' Carole Walker Political correspondent, BBC News

Even by the rowdy standards of PMQs, the BBC political correspondent Carole Walker says today's exchanges were "furious".
Norman Smith, BBC assistant political editor

tweets: Labour - " we will look at idea of digital debate" #tvdebates
12:55: Nick 'Plumber' Boles Daily Politics Live on BBC Two

Nick Boles, the apprenticeships minister, has been filmed getting his hands dirty - or wet - helping out as a plumbing apprentice. "Finally, an honest day's work from a politician, eh?" he says.
@paulwaugh Paul Waugh, PoliticsHome editor

tweets: Labour points out Tories had confidence and supply voting deal with SNP in Holyrood in 2007. Shows "massive hypocrisy and their idiocy"
@BBCNormanS Norman Smith, BBC assistant political editor

tweets: Downing St say " more than happy" to look at idea of digital debate #tvdebates
12:51: Digital debate

The broadcasters have issued a statement after today's proposal from YouTube, the Telegraph and the Guardian for a digital debate before 27 March. It reads: "The joint broadcasters are trying to deliver debates because we know our audiences want them. In 2010 they were watched by more than 20 million people and our research suggests there is an appetite for them in 2015. We have issued invitations to seven party leaders and we continue to hope they will all agree to take part."
@paulwaugh Paul Waugh, PoliticsHome editor

tweets: It's official. No10 spksmn, asked if PM now rules out head to head TV debate with Miliband:"Yes. Final offer means final offer"
@PeteWishart Pete Wishart, SNP MP

tweets: I had a little piece of jacket pocket related theatre if I had got called at #pmqs today. Alas, it will have to wait.
12:47: Chess challenge Daily Politics Live on BBC Two

Grant Shapps appears to be conflating a confidence-and-supply arrangement with a coalition. They amount to the same thing, he says - "propping up the government". Emma Reynolds says his assessment is "total bunkum". And then the two end up somehow challenging each other to a chess match. Things are clearly getting out of hand.
12:46: SNP in government? Daily Politics Live on BBC Two

Tom Newton-Dunn tells the Daily Politics he thinks the SNP will get more than 40 seats. "The SNP are going to have a blocking vote, a veto on every government that comes in," he says. "It does beg the question: what are the Tories going to do about the SNP? Will there be a deal to be done there?" The answer's 'no', Tory chairman Grant Shapps says. He says the only chance of the SNP getting into government is via Ed Miliband and Labour.
12:43: Trident renewal Daily Politics Live on BBC Two

Labour's shadow housing minister Emma Reynolds is asked about whether or not Britain needs four new submarines for Trident, which David Cameron was pressed on. Does Labour support it or not? "This idea the Tories were trying to get up in PMQs is totally false," she says, as Tory chairman Grant Shapps presses her on a recent survey that suggested three-quarters of Labour candidates oppose Trident's renewal. Ms Reynolds says the world is too dangerous to give it up. "I hate to say it, but there's no dividing line between the parties," she insists.
12:42: Pic: Daily Politics panel
@ayestotheright Tony Grew , parliamentary journalist

‏tweets: Speaker apologises for comparing @EstherMcVeyMP to a washing machine says no offence intended
12:41: 'Punch and Judy' Daily Politics Live on BBC Two

The Sun's Tom Newton-Dunn wasn't impressed by the tone of that session. "That really was Punch and Judy at its utter worst. What have the good British public done to deserve a spectacle like that?" he asks on the Daily Politics. He was surprised that Jeremy Clarkson didn't come up. And he points out that the PM wore a blue shirt for the first time - not a white one. "I'm not saying it's a big point," he adds. Still, worth noting.
@timsculthorpe Tim Sculthorpe, Press Association parliamentary editor

tweets: Only two #PMQs to go. Not sure lobbing insults about being "despicable" (DC to EM) and "bully" (EM to DC) is helping anyone win votes.
12:38: Policing cuts House of Commons Parliament

One last question to catch up with - Jack Dromey, Labour MP for Birmingham Erdington (and Harriet Harman's husband) raised policing cuts. He quotes Sir Hugh Orde saying future spending cuts may make it impossible to adequately protect the public from criminals. This gives David Cameron an opportunity to address Labour's spending cuts plans. "As for the shadow chancellor's dossier, he briefed against it before we even had a chance!" Ed Balls shakes his head as the PM adds: "He now briefs against himself!"
12:38: Two more to go... House of Commons Parliament

And that's it for this week's PMQs. Just two more before the election now. We'll bring you reaction and analysis as it comes in.
@JGForsyth James Forsyth, The Spectator

tweets: Ed Balls nodding vigorously as Cameron says that Trident is non-negotiable
12:37: SNP (again) House of Commons Parliament

The SNP have been licking their lips in public, Tory MP Julian Lewis says, about the prospect of curtailing the UK's plans on Trident as part of a coalition deal after the election. Will the PM rule such a deal out, he asks. David Cameron says for him Trident and its replacement are "non-negotiable".
12:34: Retirement plans House of Commons Parliament

Gerry Sutcliffe, the Labour MP for Bradford South points out this will probably be his last question in PMQs. He's making his retirement plans - how about the PM's? David Cameron says: "We've all got plans for after 7 May. People we want to spend more time with, people we want to spend less time with. I've got a little list, I expect he's got one too!"
@JGForsyth James Forsyth, The Spectator

tweets: Anna Soubry goes 'eurgh' when Nigel Adams suggests voters could go to bed with Nigel Farage and wake up with Ed Miliband and Alex Salmond
12:32: Defence investment House of Commons Parliament

Caroline Dineage seeks a commitment to the defence industry from the PM, skirting around the concerns of some of her Conservative backbench colleagues about recent defence spending predictions. In response David Cameron is able to talk about defence investment in her constituency.
12:32: Sexual abuse inquiry House of Commons Parliament

The DUP's Greogory Campbell calls for a cross-border inquiry sexual abuse after claims the IRA subjected alleged victims to "kangaroo courts". Mr Cameron says he will look at the idea, but the Stormont agreement has provisions for dealing with crimes of the past.
12:31: Pic: Gregory Campbell House of Commons Parliament
@VickiYoung01 Vicki Young, BBC political correspondent

‏tweets: A moment of harmony as David Cameron pays a warm tribute to "remarkable man" David Blunkett #pmqs
12:30: Wake-up call

Nigel Adams, the Tory MP for Selby and Ainsty, raises David Cameron's previous warning about the perils of voting for UKIP. "If voters go to bed with Nigel Farage on May 7th, not only could they wake up with a new leader of the opposition but they could also wake up snuggled up to Alex Salmond," Mr Adams suggests. David Cameron runs with it. Who knows who voters might wake up with? he wonders. "It all points to the difference between the competence of the Conservatives and the chaos of the alternative."
12:29: Pic: Nigel Adams House of Commons Parliament
12:29: Blunkett tribute House of Commons Parliament

David Blunkett says he was thinking about asking about the long-term economic plan - getting cheers - which, he says, grows longer and less attractive by the day. But instead he goes with his "imminent" relief neither of them will have to "pencil in" PMQs on a Wednesday - Mr Blunkett is standing down the election. Mr Cameron brushes off the comment, but pays tribute to Mr Blunkett, saying he is an "extraordinary" politician.
12:29: Pic: David Blunkett House of Commons Parliament
12:29: Asbestos in schools House of Commons Parliament

Annette Brooke, the third Lib Dem to get a question in this week, raises asbestos and the vulnerability of children to it. She wants the government's review on asbestos in schools to be published before parliament is dissolved. David Cameron says it will be published "in due course" and adds that "action will be taken".
12:28: Pic: Speaker John Bercow tries to keep the peace House of Commons Parliament
12:28: Universal benefits House of Commons Parliament

Rosie Cooper, from the Labour benches, goes on universal benefits. She says retired pensioners in her area ask about the point of a free bus pass when there are no buses. She asks the PM - amidst a number of interruptions - to "do the right thing" and ensure concessionary travel is fair and equitable. Mr Cameron says buses are the responsibility of local councils and argues the government has kept its commitments to pensioners.
@jameschappers James Chapman, Daily Mail political editor

tweets: @GiselaStuart goes on defence spending, as Miliband should have done #pmqs
12:27: A new city?

Sir David Amess, the Conservative backbencher for Southend West, wants David Cameron to outline which policies will continue the economic recovery. And he says he wants Southend to be made a city, too. The PM congratulates him for the "consistency of his campaign" on this but doesn't promise anything. On the "long-term economic plan", of course, he has rather a lot more to say.
12:23: Pic: Gisela Stuart House of Commons Parliament
@DannyShawBBC Danny Shaw, BBC home affairs correspondent

tweets: Home Secretary will not make a decision about whether to authorise the use of water cannon on mainland Britain until after the election.
12:26: Defence spending House of Commons Parliament

Labour's Gisela Stuart asks about 2% defence pledge, saying David Cameron must be "embarrassed" he is now backtracking. Mr Cameron denies reneging and asks about the SNP again, asking how Ms Stuart feels about a Labour coalition with the SNP who, Mr Cameron says, want to strip back the UK's defence - including Trident.
@joeyjonessky Joey Jones, Sky News deputy political editor

tweets: Both leaders say "anytime, any place, anywhere" and yet we're no closer to debates happening it seems. lots of bluster, and bitter too.
12:26: Pic: Paul Farrelly waves a 'leaked NHS document' House of Commons Parliament
12:26: Ultra-rare diseases

Greg Mulholland, a Lib Dem MP, tells MPs people with ultra-rare diseases are being let down. Children, some of who are gathered outside parliament, will be losing access to drugs soon, he says. "My understanding," David Cameron replies, "is that NHS England is holding a review. The review will be completed by the end of April." Because the drugs will be available until the end of May he doesn't see a problem for "continuity of care".
@jameschappers James Chapman, Daily Mail political editor

tweets: Mandelson in helpful mood today: predicts no Labour majority and says broadcasters would be wrong to 'empty chair' Cameron in #tvdebates
12:22: NHS House of Commons Parliament

Paul Farrelly from Labour asks about looming deficits in the NHS. He asks why the government is trying to "cover-up" what's in store for parts of the service. Mr Cameron says Labour MPs are trying to frighten people and says the government is trying to build a strong NHS.
12:20: Hospices

Mark Hunter, the Liberal Democrat MP for Cheadle, pays tribute to health professionals at a hospice in his constituency. Devolving £6bn of spending to Greater Manchester will help secure cash for local hospices, he suggests. David Cameron is very happy to agree with that. "I'm a parent which used a hospice in Oxford regularly and was absolutely amazed by the work that they do," the PM adds.
12:19: Pic: Naomi Long House of Commons Parliament
12:20: Northern Ireland Assembly House of Commons Parliament

Naomi Long from the Alliance party asks if David Cameron shares her anger that Sinn Fein is "reneging" on promises made as part of Stormont agreement. Mr Cameron says what matters is now implementing the agreement. He says the Northern Ireland secretary is working hard to make sure everyone fulfils their pledges. More on the background here.
@VickiYoung01 Vicki Young, BBC political correspondent

tweets: Maybe SNP MPs will turn up next week in coattails #pmqs
12:18: Learning disabilities

Maria Miller, the former culture secretary and ex-disability minister, asks the PM to welcome the Inclusion Zone in her Basingstoke constituency helping people with learning disabilities. David Cameron does so, and adds that over 1,000 employers have committed to changing their working practices under this government.
12:17: Pic: Caroline Lucas House of Commons Parliament
12:18: Caroline Lucas on NHS House of Commons Parliament

Caroline Lucas, the Green MP, says market structures in the NHS cost over £10bn a year. She asks why the prime minister doesn't think the money would be better spent elsewhere. David Cameron says his government is cutting bureaucracy, and says Ms Lucas is wrong if she thinks there is only one way to deliver healthcare.
12:17: Science spending

Tory Stephen Metcalfe wants David Cameron to commit to sticking with the current science budget, which was ringfenced for the 2010-15 Parliament. The PM doesn't do so in his answer.
12:17: Miners' strike

Lisa Nandy, the Labour backbencher for Wigan, poses a question about the miners' strike. David Cameron says unemployment in her constituency has fallen by 44% since the coalition began its work.
@DArcyTiP Mark D'Arcy, BBC parliamentary correspondent

tweets: I think we can say goodbye to the idea of a grand Con-Lab Coalition after next a election #PMQs
@MichaelPDeacon Michael Deacon, political sketch writer, Telegraph

tweets: "He's weak and despicable!" "He's chickening out! Feeble!" Is this a #fracas?
12:16: Women's rights

Mary MacLeod, the Tory MP, praises the coalition on women's rights. She asks if the PM will back a women's select committee in the Commons. David Cameron says the government is doing a lot to help women, the government has a "good record" on women's rights, he says.
@georgeeaton George Eaton, New Statesman political editor

tweets: The tediousness of the debate about the debates is probably the best argument for having them. #PMQs
12:16: Immigration 'failure'

Douglas Carswell, the UKIP MP asked about immigration, his party's big issue. "Why has he failed?" Mr Carswell asks the PM. Mr Cameron responds by saying his focus is on reforming welfare to prevent immigrants from taking benefits unfairly.
12:16: Pic: Alistair Burt House of Commons Parliament
12:16: Pic: Douglas Carswell House of Commons Parliament
12:15: Contaminated blood House of Commons Parliament

That's the end of the head-to head and next up is Tory MP Alistair Burt. He asks about a report on contaminated blood in Scotland and whether the prime minister will assure Parliament the issue will not slip from the agenda and the tragedy will be "closed down" in the next Parliament. Mr Cameron says the country should be helping people affected more and says he will tackle the issue if still PM after the election.
12:14: Bankrupt and break-up Britain

Mr Cameron responds: "The truth is they've got nothing to say on policy, nothing to say on the economy." He says a Labour-SNP alliance would be one between the people who want to "bankrupt Britain" and the people who wants to "break-up Britain". He finishes by declaring: "The British people will never have it."
12:11: 'Bully' Cameron

After another interruption from John Bercow, Ed Miliband says the only person posing a risk to the integrity of the UK is "this useless prime minister". He says the PM is running for cover "like all bullies" do when the heat is on.
12:11: Pic: David Cameron waves Scottish Labour leaflet House of Commons Parliament
12:09: 'Despicable'

David Cameron says Ed Miliband is being "despicable" and again presses the SNP question saying the Labour leader "wants to crawl to power in Alex Salmond's pocket" . If he had an ounce of courage, the prime minister says, he'd rule it out.
@BBCNormanS Norman Smith, BBC assistant political editor

tweets: Ed Miliband says he will take part in #tvdebates but no mention of digital debate #PMQs
12:09: 'Chickening out'

"If he's so confident," Ed Miliband replies, "why is he chickening out of the debate with me?" It matters because it goes to David Cameron's character, he says. He wants the PM to show more "backbone".
12:08: 'A television programme'

Ed Miliband says David Cameron should admit that "he's worried he might lose again". David Cameron replies: "He wants to talk about the future of a television programme. I want to talk about the future of the country." That gets a big cheer from the government backbenches.
12:07: 'On the SNP's coat-tails'

David Cameron prompts some 'ahhs' from backbenchers as he quotes a Labour leaflet in Scotland. "They're not trying to win, they're just trying to crawl through Downing Street on the coat-tails of the SNP," he says. Ed Miliband, responding, says the only person preparing for defeat is the prime minister.
12:06: Pic: Ed Miliband House of Commons Parliament
12:06: 'Smirking'

Speaker John Bercow intervenes, telling the Commons off for shouting and singling out Michael Gove for "smirking". Ed Miliband, resuming, says David Cameron is offering "pathetic, feeble excuses".
@janemerrick23 Jane Merrick, Independent columnist

tweets: Rhyming couplet from Cameron "if he wants a debate, I offered a date" #pmqs
12:05: Debates and the SNP

Ed Miliband invites David Cameron to "name the day" for a debate. The PM says 23 March is the date he'd like. Now, Mr Cameron says, what's changed is that "Labour can't win without the SNP".
12:05: TV debates House of Commons Parliament

The main exchanges begin with Ed Miliband facing the usual barrage of cheers and jeers from MPs. He leads with the TV debates. "When did he lose his nerve?" the Labour leader asks. Mr Cameron says he's offered a date already. "I'm going to be at the debate!" Mr Miliband responds.
12:03: Pic: David Cameron House of Commons Parliament
12:03: Under way House of Commons Parliament

Stella Creasy, the Labour MP, is up first on defence spending. She asks if tax cuts or defence are more important to the prime minister. Mr Cameron says economic security is key - his government has filled gaps in the economy are investing in defence.
12:00: Pic: David Cameron in the Chamber House of Commons Parliament

David Cameron takes his seat in the House of Commons ahead of Prime Minister's questions.
12:00: Defending the Milibands Daily Politics Live on BBC Two

Emma Reynolds, Labour's shadow housing minister, is on the Daily Politics defending the Milibands for appearing together on the BBC. "Justine and his kids are obviously a very big part of his life," she says. "I think it is absolutely right that people that stand up and do the decent thing like Ed shouldn't be shot down all the time. I do think people want to know more about him and his background and his family."
@BBCNormanS Norman Smith, Assistant political editor, BBC

tweets: Momentum building behind digital debate. UKIP, lib Dems and Greens set to agree. No 10 " looking at it" . What do Labour do ? #tvdebates
@DouglasCarswell UKIP MP Douglas Carswell

tweets: Thanks for all the suggestions as to what I should ask the PM today. So many things to go on. #Pmq #AskDave
11:58: Farage accepts digital debate invite

More from UKIP's Nigel Farage on his decision to take part in a digital election debate: "I hope that the prime minister will muster up the courage to stand by his own words, and show up to try and defend his record in government. Mr Cameron has failed on nearly every pledge he made to the British public in 2010, and it is evident he's afraid of butting heads with UKIP on immigration, the EU, our NHS, defence, education policy and more."
11:58: Breaking News

Nigel Farage has said he would take part in a digital debate organised by YouTube, the Guardian and the Telegraph. The UKIP leader says: "Scrutiny is an important part of democracy, and for this reason I am delighted to accept the Telegraph/Guardian/YouTube invitation to this debate - so that I can make the case to the British electorate on why they should vote UKIP."
11:55: Political 'setback' House of Commons Parliament

Northern Ireland Secretary Theresa Villiers accuses Sinn Fein of "setting back" the political situation in Northern Ireland by withdrawing their support for welfare reforms on Monday.

Their action has "put in jeopardy corporation tax, and devolution, a financial package and put in jeopardy a fresh approach to the passed" she complains.
11:54: 'A plausible way forward'

Conservative chairman Grant Shapps says he's not familiar with the "digital debate" offer (see 10.40am entry for details). But in general he sounds enthusiastic. "These debates are a good idea, if we can hold it before the election," he tells the Daily Politics. After Andrew Neil explains to him the details he adds: "I still think it would be preferable to have it on the main TV channels, but if the broadcasters can't sort it out this seems like a plausible way forward to me."
11:51: Defence spending Daily Politics Live on BBC Two

Conservative party chairman Grant Shapps doesn't say that the Conservative manifesto will include a pledge to maintain defence spending at 2% of GDP in the next Parliament when pressed on the issue on the Daily Politics. Instead his focus is on providing reassurance about the "defence of the realm". "We will do what is right to protect this country," he says. "We will make sure a future Conservative government will make sure we have not just the regular standing Army which we won't cut, but the equipment [too] to make sure we can defend this country."
11:45: Tributes to Lord Molyneaux House of Commons Parliament

MPs are paying tribute to former Ulster Unionist Party leader James Molyneaux who died aged 94 earlier this week.

Northern Ireland Minister Andrew Murrison describes Lord Molyneaux as a "distinguished Second World War veteran and a fine parliamentarian serving Northern Ireland for more than four decades."

DUP MP Jeffrey Donaldson, who represents Lord Molyneaux's former constituency of Lagan valley tells MPs that Lord Molyneaux was a "consummate parliamentarian who provided strong leadership during very dark days in Northern Ireland" who is still "fondly remembered by his constituents"
11:43: Defence spending Daily Politics Live on BBC Two

Conservative backbencher James Gray is speaking out against the prime minister's defence spending plans on the Daily Politics, after the Financial Times reported No 10 had asked Oliver Letwin to find ways of including intelligence spending in what's defined as 'defence'. "For the prime minister to be even contemplating tinkering with the accounts… I think is quite wrong," Mr Gray says. "Sticking other things in there and pretending they're part of defence won't wash. People like me won't be fooled by that."
11:35: Northern Ireland party funding House of Commons Parliament

Alliance MP Naomi Long has kicked off proceedings over in the House of Commons urging the government to hurry up and publish a new law to enable the Electoral Commission to publish details of all donations made to Northern Ireland recipients since 2007, and loans made since 2008, will be published.

The government ran a consultation on creating the law in January last year. Northern Ireland Minister Andrew Murrison says he is "confident draft" legislation will be ready to lay early in the next parliament.