IDS: Tax Credit System 'Haemorrhaging Money'

More than £10bn of public money has been lost in fraud and error under the tax credit system put in place by Labour, the Work and Pensions Secretary has claimed.

Attacking the welfare model developed by the last government, Iain Duncan Smith said tax credits were "not fit for purpose" but had been extended ahead of the 2005 and 2010 general elections in a pitch for votes.

The system was "wide open to abuse" and "haemorrhaging money", he wrote in an article for The Daily Telegraph.

"In the years between 2003 and 2010, Labour spent a staggering £171bn on tax credits, contributing to a 60% rise in the welfare bill.

"Far too much of that money was wasted, with fraud and error under Labour costing over £10bn."

Mr Duncan Smith said HM Revenue and Customs conducts checks on far fewer tax credit claims than suspected benefit fraudsters.

That is despite about one in 12 tax credit claims being incorrect or fraudulent, compared with fewer than one in 25 benefit claims.

Payments are based on estimates of income for the coming year, and after 2008 HMRC did not attempt to reclaim overpayments of less than £25,000.

That is set to be reduced to £5,000 under the coalition, alongside moves to require proof of payments from those claiming for childcare or that children aged between 16 and 19 are in full-time education.

The Government hopes to save more than £300m in the next three years by reducing fraud and error, and also wants to recover more than £400m in unpaid debts.

Mr Duncan Smith is overseeing a fundamental overhaul of welfare which will see tax credits rolled into a new Universal Credit which is meant to simplify the system and better incentivise work.

"Even for those in genuine need of support, tax credits were not fit for purpose," he said.

"The system was haemorrhaging money while at the same time trapping people in a system where those trying hard to increase the amount of hours they worked weren't necessarily better off."

Mr Duncan Smith said tax credit payments had risen by 58% in 2005 and by more than 20% in the two years before the 2010 election.

"At the most basic level, Labour used spending on tax credits as an attempt to gain short-term popularity. They knew what they were doing - it was a calculated attempt to win votes," he claimed.

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Plastic Surgery Campaigns Target 17-Year-Olds

By Jason Farrell, Sky News Correspondent

A study commissioned by the Government to look into the cosmetic surgery industry has found that 17-year-olds are being targeted by aggressive marketing campaigns.

The interim report has found people want to see tighter restrictions around the industry to protect patients from certain sales techniques.

The review was commissioned by the Department of Health following the PiP breast implant scandal.

Science journalist Vivien Parry, who is on the review panel, told Sky News: "I have been really shocked by what I've seen.

"Extraordinary things. For instance, 17-year-olds being plagued by texts saying, 'In less than a year's time you'll be able to have cosmetic surgery.'"

She added: "I just think that's awful. What it does to the psyche of young girls is one thing. But it sets up a cosmetic procedure, which has both short-term and long-term risks, as if it were something entirely trivial."

The report found patients and industry groups want tighter restrictions on advertising including banning two-for-one or time-limited deals, and cosmetic surgery as competition prizes.

The final report is due to be published in March

They want to introduce a two-stage written consent process so that people have time to reflect.

Another demand is for patients to receive better information before making their decision. For example, providing them with photographs showing expected bruising and scarring.

Ms Parry said: "Cosmetic procedures are being sold like double glazing. If you make a decision within a week, you'll get money off.

"You can buy one procedure, get another procedure for free, bring along a friend, or have cosmetic surgery as a raffle prize.

"It concentrates on the money side of it so people forget about the health side."

PiP victim Victoria Newton, who had to have her breast implants replaced after they both ruptured, welcomed the report.

She told Sky News that when she first considered surgery, aged just 19, she was pressured and misinformed ahead of her decision.

Victoria Newton was a victim of implants by the now-defunct PiP company

Ms Newton said: "There was nothing personal about my consultation. It wasn't like I was going in for an operation. It was like I was buying a car or booking a holiday.

"There was a time-limited offer and I was really encouraged to go for that. At the time, I thought I was getting a good deal. They offered £500 off the price of the surgery, if I signed up that day."

After sparking a global health scare, the implants made by now-defunct French company Poly Implant Prothese were pulled from the market in several countries due to fears they could rupture and leak silicone into the body.

The interim report into cosmetic surgery practices suggests anything that pressures patients like Ms Newton to make a snap decision about surgery should be banned.

It states that consultations should always be conducted by the surgeon who will carry out the procedure, rather than sales staff.

But the president of the British Association of Aesthetic Plastic Surgeons, Rajiv Grover, says the recommendations do not go far enough.

"We're very pleased the report has focused on sales tactics used in cosmetic surgery. It's something we've been campaigning for, for the last decade," he told Sky News.

"However, we'd like to go further and suggest an outright ban on advertising, just as you would have for prescription-only medicines and other types of surgery."

He added: "This is a medical procedure and should be subject to the same regulations as any other medical procedure."

The suggestions highlighted in the interim report will feed into the work led by the NHS Medical Director Sir Bruce Keogh, who is due to publish his full recommendations in March.

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Ronnie Wood's Wedding Photo With New Wife

Rolling Stone Ronnie Wood has released an official wedding photo with his new wife and his two famous best men.

The 65-year-old married Sally Humphreys, 34, at the Dorchester Hotel in London earlier this month.

It is the third time the guitarist has been married but he has told Hello! magazine that Sally is the perfect partner for him.

At the ceremony on December 21, he told guests: "I wish I'd met Sal earlier. I can't think of another girl more suited to me."

He also tells the magazine it was a wonderful day, saying: "She looked beautiful walking through that doorway. I feel very blessed to have a new family.

"My dad and brothers are no longer with us so it's really nice to be welcomed by a new gang. Her relatives are lovely."

Pictures of the wedding, taken for Hello! magazine, show Wood and his new wife alongside rock star best men Rod Stewart and Sir Paul McCartney.

The photograph, which also features her seven-year-old niece Heather, comes from the official wedding album, with the couple donating their entire fee to charities.

Wood said his new wife accompanied him to Sir Paul's wedding to Nancy Shevell last year.

"Paul was saying at the time 'Wow, this is wonderful, you two make a great couple,'" he said.

The 34-year-old bride married in the same wedding dress as her mother and wore a red heart-shaped pendant designed by Wood.

Wood's children Jesse, Tyrone and Leah took pride of place in the front row.

"They are happy to see their dad happy," he said. The Stones star said he chose his two best men because "they have always been very supportive of me and Sally".

Wood also reveals how he was so relaxed before the ceremony that he played a game of snooker with friends.

He previously married Krissy Findlay in 1971, before divorcing seven years later.

Wood split from his second wife Jo in 2008, after 23 years together, when he had an affair with a 21-year-old cocktail waitress.

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Curtain To Rise On UK's First City Of Culture

By David Blevins, Ireland Correspondent

To nationalists on one side of the River Foyle, it is Derry. To unionists on the other, it is Londonderry. Now, they are uniting around one name: the UK City of Culture.

Northern Ireland's second largest city beat off stiff competition for the inaugural title - Birmingham, Norwich and Sheffield were shortlisted.

Those behind the successful bid had a rich heritage to draw on.

Martin Bradley, City of Culture chairman, said: "When you look at the prominent people who left the city - Nobel Peace Prize winners, Eurovision Song Contest winners, a Poet Laureate, Field Day, Peter Cunnah, The Undertones - the list is absolutely endless."

Changing the image will not be easy. The place is synonymous with 'The Troubles'. In 1972, British soldiers shot 13 people dead during a civil rights protest on the streets here.

Memorial to those who died on Bloody Sunday

John Kelly, whose brother Michael died on Bloody Sunday, said: "We're in a much better place after the public inquiry. It helped heal our people and heal the city.

"The Saville Report and (Prime Minister) David Cameron's apology helped move things forward."

For others, the war will never be over. Hard-line republicans are still making their presence felt. Terrorist attacks and paramilitary-style "punishment shootings" remain part of the culture in some areas.

Eamon McCann, Derry Journal columnist, said: "The ideology being promoted by what are called 'dissident republicans' is part of what we are in Derry. Are we not to admit that there are these tensions, that there's still this incipient murder?"

For the most part however, things have changed. Protestants and Catholics, previously separated by the river flowing through the centre of the city, have been connected by a peace bridge.

The British army barracks is now a concert venue and the year-long programme is diverse - from Britain's Royal Ballet to the All-Ireland Fleadh, the world's largest festival of Irish culture.

Derry, Londonderry or #Legenderry - the promotional hashtag on Twitter - it certainly has no shortage of names. Most residents would prefer that their city had only one reputation: culture, not conflict.

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Northern Ireland Bomb: Family's Lucky Escape

A policeman in Northern Ireland targeted by a car bomb was taking his family for Sunday lunch when he found the device, it has emerged.

Assistant Chief Constable George Hamilton revealed that the officer was going out with his wife and two young children when he checked his car as a matter of routine.

He found the bomb - believed to have been planted by dissident republicans - underneath his vehicle outside his home in Belfast.

The property is close to the Police Service of Northern Ireland (PSNI) headquarters at Knock and the Northern Ireland Assembly at Stormont.

"If that officer had not checked his car, we would have been looking at a murder or multiple murders," Mr Hamilton told a news conference as he appealed for witnesses to come forward.

Army robot used to examine the device

"We believe the consequences of this would have been absolutely devastating for the officer, his family, for the police family and for the communities across Northern Ireland.

"For some reason, those people who are anti-peace, who are still hanging on to the past, who aren't prepared to move forward, have tried to murder this officer and his family.

"We consider that completely repugnant. It's inhumane. By any standards in any society, this is wrong and we utterly condemn this attack."

He warned that there was a severe threat level across Northern Ireland and appealed to officers to be vigilant and check under their cars.

It is hoped that the bomb will be useful as evidence because it was discovered and did not engage.

Justice minister David Ford said: "It is ironic that this latest attack was carried out so close to Stormont, where those who are democratically elected seek to move matters forward through debate.

The bomb was planted on Upper Newtownards Road

"The people responsible for this and other recent attacks have no mandate and speak for no one. They need to recognise the futility of their campaign and respect the wishes of the vast majority of our community who want an end to all violent acts."

Dissidents have repeatedly targeted security force members in recent years.

Over the last five years there have been 115 arrests and 35 charges and 64 officers have had to leave their homes, a police spokesman said.

In November, long-serving prison officer David Black, 52, was shot dead in a motorway ambush in Co Armagh as he drove to work.

A group styling itself the "new IRA" claimed that attack. The faction was formed in the summer when a number of splinter groups joined forces.

In April 2011 newly qualified police officer Ronan Kerr, 25, died when a dissident booby trap car bomb exploded under his vehicle at his home in Omagh.

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Paralympic Heroes Hit Out At Honours List

Leading Paralympians have criticised the New Year honours system, claiming it is easier for able-bodied athletes to get knighthoods.

Cyclist Sarah Storey was the only Paralympic athlete among the knights and dames, despite many racking up more gold medals than Bradley Wiggins or Ben Ainslie, the Olympians given top awards in this year's list.

Dressage rider Lee Pearson, who has won 13 medals including 10 golds at four Games, was one of two Paralympians to get OBEs in the list, which was published on Saturday.

He told the Independent: "Obviously, 10 gold, one silver and one bronze just isn't enough.

"I'm disappointed because I do feel I've given a lot to Paralympic sport and equestrianism. I think 10 gold medals is quite an achievement."

David Weir was given a CBE after winning four gold medals at London 2012

Wheelchair racer and six-time gold medal winner David Weir suggested Paralympians have to work harder to earn recognition than their non-disabled counterparts.

Weir, who was the only disabled athlete among five CBEs in the list, told the Telegraph: "Kelly Holmes was made a Dame when she won two gold medals, but it seems we have to get into double figures to get it.

"Sarah Storey should have been awarded this years ago, and I just feel that sometimes we are left out perhaps because we are not in the public eye.

"It is a bit strange, but I am just honoured to get anything from the Queen for doing a sport I love."

The list was drawn up by the Sports Honours Committee, which is chaired by Lord Coe and includes the former Paralympic athlete baroness Tanni Grey-Thompson.

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Cameron: Britain 'On Right Track' For 2013

By Jon Craig, Chief Political Correspondent

David Cameron has used his New Year's message to declare that Britain is "heading in the right direction" on all the big issues and can look forward to 2013 with "realism and optimism".

In a video address, the Prime Minister acknowledged 2012 was "tough", with many families finding it difficult to make ends meet - and admitted he had "no quick fixes" to the UK's economic problems.

But he cited evidence of "real progress" on cutting the state deficit, reforming welfare and improving school standards, which he said was preparing Britain to succeed in the "global race" with emerging economic giants like China and India for the jobs and opportunities of the future.

Mr Cameron said that his administration was "a Government in a hurry" which would not give in to pressure to slow the pace of deficit reduction or rein in reforms to welfare and education.

"This is my message to the country at the start of 2013," said the Prime Minister. "We can look to the future with realism and optimism.

"Realism, because you can't cure problems that were decades in the making overnight. There are no quick fixes and I wouldn't claim otherwise.

"But we can be optimistic too because we are making tangible progress. We are doing what's right for our country and what's best for our children's future."

Insisting that "we are on the right track", Mr Cameron said: "On all the big issues that matter to Britain, we are heading in the right direction and I have the evidence to prove it."

The deficit is forecast to be a quarter smaller at the New Year than it was when the coalition Government came to office. There are almost half a million more people in work, and more than 1,000 new academy schools have opened, said Mr Cameron.

And he hailed moves to take millions of low-paid workers out of income tax, freeze council tax bills and deliver the largest-ever increase in the state pension.

"This is, quite simply, a Government in a hurry," said Mr Cameron. "And there's a reason for that.

"Britain is in a global race to succeed today. It is a race with countries like China, India and Indonesia; a race for the jobs and opportunities of the future.

"So, when people say we can slow down on cutting our debts, we are saying no. We can't win in this world with a great millstone of debt round our necks.

"When people say we've got to stop our welfare reforms because somehow it is cruel to expect people to work, we are saying no. Getting people into good jobs is absolutely vital, not just for them, but for all of us.

"And when there is a fight on our hands to change our schools, we are ready and willing to have it, because having a world-class education is the only way our children are going to get on in this world."

He added: "This is what this Government is about: making sure Britain succeeds in this global race and, above all, helping our people succeed - the people who work hard and aspire to a better life for their families."

The message steered clear of the debates over Britain's future in the European Union - due to feature in a long-awaited speech by the Prime Minister in the coming weeks - and gay marriage, which have driven divisions through the Conservative Party over the past year.

Instead Mr Cameron looked back on 2012 as "an extraordinary year for our country", characterised by the Diamond Jubilee celebrations and the successful Olympics and Paralympics.

In response, Labour vice chair Michael Dugher said: "It's a case of more of the same from David Cameron.

"In his New Year message, Cameron talks of people who work hard in this country but he's the one hitting hard-working families on lower and middle incomes whilst cutting taxes for millionaires.

"David Cameron stands for the old divide and rule Tory approach of the past - he can't be the One Nation Prime Minister Britain needs.

"Cameron promised change but nothing is changing for the better. Britain's economy is failing under his policies over the last year, with nearly one million young people out of work.

"Prices are still going up faster than wages and borrowing is going up not down, over 7% higher this year than last year.

"This Prime Minister is out of touch, he stands up for the wrong people and he's failing to deliver for working people."

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New Year's Reprieve: Rain Clears For 2013

The heavy rain which has washed out December will stop in time for New Year's Eve celebrations - bringing a brighter start to 2013.

Showers will soak much of Britain overnight and during the day tomorrow - but skies will clear over many parts in time for the evening of the 31st.

Forecasters predict that London - where thousands will turn out for fireworks - should have clear skies, though temperatures will be quite low.

The heavy rain should also subside in time for the celebrations in Edinburgh, but there will still be a risk of some light showers.

2012 is set to become the wettest year on record in the UK

Sky weather presenter Nazaneen Ghaffar said the start of 2013 should be brighter, and less wet, than the worst of December.

The south of the country should be mostly dry during the first few days of the new year, with some outbreaks of rain further north.

Meanwhile, flood warnings remain in place across Britain with another band of miserable weather swamping the country today.

Strong winds and showers followed by more heavy downpours are bringing the last weekend of the year to a wretched end.

Days of almost relentless downpours blighted parts of the country for much of December, punctuated only by the briefest of dry spells.

Hundreds of alerts have been issued by the Environment Agency this month, as several days' worth of rain has fallen in just a few hours at its worst.

It has contributed to a year of bad weather with records, dated up to Boxing Day, showing England on the brink of its wettest year since records began in 1910.

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Attacks On Women In Wapping 'Could Be Linked'

Violent attacks on two women in east London could be linked, police have said.

The women were both stabbed in separate attacks 15 days apart as they walked through the same park in Wapping.

The first attack occurred at around 6.25pm on Tuesday, December 4, as the 38-year-old victim walked through the park, known locally as Wapping Woods, off Garnet Street.

The attacker approached her holding a knife and stabbed her before taking a digital camera from her bag and running off towards The Highway.

Then on Saturday December 29, at around 12.25pm, a 26-year-old woman was approached by a man holding a knife and forced into bushes where she was stabbed.

It is not believed that anything was taken before he ran away towards The Highway.

The victim was taken to an east London hospital in a serious condition, though her injuries are not thought to be life-threatening.

Following the first incident the description of the suspect was given as an Asian male in his late teens or early twenties, between 5ft 2ins and 6ft in height, chubby build with short black straight hair with a brushed forward fringe.

He was wearing a dark, unzipped hoodie with light tassels, and jeans.

The second victim described her attacker as an Asian man, aged around 30 years, 5ft 6 to 7ins in height, with gelled messy hair and light stubble, and wearing denim jeans and a dark jacket.

Given the similarities between the circumstances and victim descriptions in both attacks, they are being treated as potentially linked.

Inspector Joseph McDonald of Tower Hamlets police said: "There are clear similarities between these incidents and officers are doing everything possible to find the man or men responsible.

"The violence used in these attacks is hugely concerning and could easily have led to a fatality.

"I would urge anyone with information that could assist officers to make contact with the police as soon as possible so that we can apprehend whoever is responsible."

Anyone with information should call Tower Hamlets Police on 101 or, to remain anonymous, Crimestoppers on 0800 555 111.

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Organist Death: Grieving Widow Speaks Of Evil

The widow of Alan Greaves, who died after being attacked on his way to a Christmas Eve midnight mass, said she has not stopped crying over her husband's death and the "evil that has been done".

Mr Greaves, 68, was discovered badly beaten near his church in High Green, Sheffield, on Monday.

The father-of-four died in hospital on Thursday after suffering serious head injuries in the attack.

Two Sheffield men - one in his 20s and the other in his 40s - are in custody after being arrested on Saturday on suspicion of murder.

At the service at St Saviour's Mortomley and High Green Church, Mrs Greaves, a church community worker, thanked the couple's congregation for their support.

"I've never stopped crying for Alan, and I know that you've never stopped crying with me," she said.

"I've grieved over the evil that's been done, and I know you too have grieved over the evil that has been done.

"I have prayed for you, and I know that you have prayed for me.

Mr Greaves has been described as a 'gentle soul'

"I want to thank you because I really have sensed your very deep love and affection for me.

"You were Alan's Christian family and he loved belonging to this church."

The Bishop of Sheffield, Dr Steven Croft, led the service at the church, where Mr Greaves was a lay preacher.

Dr Croft said Sheffield had lost a "shining light".

"There is a sense of shock and a sense of outrage, not just in this community but across the whole city of Sheffield," he said.

"Alan was the victim of a brutal attack as he was on his way to church on Christmas Eve, as he was walking to this church to bear witness to his deep Christian faith.

"There will be immense grief for those who knew Alan well, which includes many in this church and community."

He went on to speak of the love and support that has been offered to the family and also appreciation for the medical teams that tried to save Mr Greaves's life.

"And in the midst of all this, I am sure, many will be giving thanks for Alan himself, for all he showed us of God's grace and love," he said.

Police say the motive remains unclear

"There will be occasions in the future for many generous tributes to be given.

"Goodness is not as common as it should be and this community and this city have lost a shining light."

Detectives are still appealing for anyone with any information about the murder to come forward.

Police are treating his death as murder but say the motive for it is unclear.

Canon Bessant said Mr Greaves had been attacked 250 yards from the church and that his family had been at home.

"His wife wants justice but she doesn't want vengeance. She is not embittered but obviously she wants this person to be caught."

Mr Greaves had recently become a grandfather to twin boys adopted by his daughter in Mozambique.

He and his wife had recently set up a food bank and community project in the area where he was killed.

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