![Image]( "PM: Stay-at-home mums may get help")
David Cameron today held out the prospect of greater financial support for stay-at-home mothers as he sought to justify the abolition of child benefit for high-earners.
Amid middle class anger at the decision to withdraw the allowance from higher-rate taxpayers, the Prime Minister insisted that the move was "fair" and would help protect poorer families from spending cuts.
But he also stressed that the coalition was committed to introducing transferable tax allowances for couples in which only one parent works.
A central criticism of the child benefit reform, announced by Chancellor George Osborne yesterday, is that it will unfairly hit single parents and single-earner households as the allowance will be withdrawn where any individual is earning £44,000 a year or more.
Two-income households in which both parents each earn less than the threshold - potentially giving them a household income of more than £80,000 - will keep the benefit.
Children's minister Tim Loughton suggested last night that the arrangement might yet be revised before it is implemented in 2013.
But Mr Cameron played down the idea of introducing means-testing that would take into consideration joint incomes, saying any such system would be "incredibly bureaucratic and expensive and, frankly, quite intrusive".
He also pointed out that a similar anomaly already existed in the income tax system, as one half of a couple could be required to pay at a higher rate irrespective of their partner's earnings.
He went on to suggest that there would be other measures to help stay-at-home mothers, however.
"Obviously it's coming in in 2013 and we have also got to look at other things we have promised to do," he told BBC Breakfast.
"If you look, for instance, at the issue of the stay-at-home mother, we do talk in the coalition agreement about having some sort of transferable tax allowance to help couples in that way.
"So there are things that we will try and do to make sure that all of what we do, if you look across the piece, to deal with the deficit is fair."
The Prime Minister added that he wished he was not having to remove child benefit from higher-rate taxpayers at all.
"It is difficult. I wish I wasn't having to do this. But we have to deal with the problems in front of us and we have to do so in a way that is fair and protects the poorest," he said.
There were signs of discontent among backbench Tories today as one, Margot James, tweeted that it was "very good" to hear Mr Loughton "confirm child benefit proposal needs to be revised".
Mr Loughton tried to play down his initial remarks, however, saying people were getting "over-excited" and that he was not calling for a review.
The reform will take child benefit away from 15% of those currently entitled and raise about £1 billion. It will cost one-child families around £1,055 a year and those with three almost £2,500.
The Institute of Fiscal Studies said the reform would be seen as unfair and warned that it would "seriously distort" work incentives.
The respected thinktank said the measure would mean a one-earner family with an income of £45,000 losing all its child benefit while a much better-off couple with an income of £40,000 each would keep the money.
But Mr Cameron said this morning: "Obviously we have this situation in the tax system itself. If you have one person earning £50,000, they pay top-rate tax, whereas if you have two people earning £25,000 they don't. This isn't a new principle."
The IFS also pointed out that a parent of two children with an income of £43,875 would actually lose money if given a pay rise of less than £2,975.
Shadow work and pensions secretary Yvette Cooper described the reform as an "unfair attack on child benefit" and, seizing on Mr Loughton's remarks, said it was already "unravelling".
"They have clearly been taken aback by the reaction of parents across the country," she said.
"George Osborne and David Cameron obviously don't understand what it means for families on middle incomes to lose thousands of pounds a year."
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Police were called to a school after up to 300 pupils staged a protest against changes to lunch arrangements.
Two students who were already excluded from Dover Christ Church Academy in Dover, Kent, were arrested on suspicion of criminal damage and public order offences, a spokeswoman for Kent Police said.
A man who was outside the academy was also taken into custody on suspicion of a public order offence, she said.
Officers were called to the school, which teaches youngsters between the ages of 11 and 19, shortly before 11.30am after pupils began walking out of lessons and began protesting.
No one was injured during the incident, but the school gate and three or four cars belonging to staff were all damaged.
The police spokeswoman said: "Kent Police in Dover were called to the Dover Christ Church Academy shortly before 11.30 today after between 2-300 pupils mounted a protest following changes to lunch arrangements.
"The year 11 students are supporting the head teacher, and a meeting is planned between student representatives and the head teacher.
"The situation is now dispersing and pupils are returning to their classrooms, or awaiting collection by parents."
The academy, which only opened last month, is sponsored by Canterbury Christ Church University, Kent County Council, Dover Grammar School for Girls and Dover Grammar School for Boys.
A spokeswoman for the school said the pupils were currently in a meeting with the head teacher, Richard Williams.
George Osborne's decision to withdraw child benefit from 1.2 million middle-class families will "seriously distort" work incentives, a respected economic think-tank has warned.
The Institute for Fiscal Studies (IFS) said some may regard the measure as "unfair" because it favours two-income families over those where one parent stays at home to look after children.
From 2013, child benefit will be withdrawn from any household with a parent earning enough to pay higher-rate income tax - currently around £44,000 - costing one-child families around £1,055 a year and almost £2,500 for those with three.
Meanwhile, Mr Osborne also announced a cap on welfare payments, limiting benefits paid to jobless households to the £26,000 average income of a family in work.
The cap would restrict benefits to £500 a week from 2013, costing 50,000 households an average £93 pounds a week. Some families would lose as much as £300 a week, but the limit would not apply to recipients of disability living allowance, war widows' pensions and working tax credit.
Mr Osborne told the Conservative conference in Birmingham that his measures, intended to save around £1 billion in child benefit and £250 million in housing benefit each year, are a "tough but fair" way to reduce Government spending.
At a time when the country is struggling to pay down a structural deficit of £109 billion, it is wrong that wealthy families should receive welfare payouts funded in part by the taxes of poorer people, he said. And there should be no "open-ended chequebook" for families in which no one works.
But he faced criticism from Labour, unions and poverty campaigners.
Shadow work and pensions secretary Yvette Cooper accused the Government of "making families with children pay more", while the Child Poverty Action Group said it is "very unfair that families with children should once again be taking the hit".
The IFS drew attention to perverse consequences of the measures, which will mean a one-earner family with an income of £45,000 losing all its child benefit while a much better-off couple with an income of £40,000 each would keep the money.
Ministers' plans to open free schools and extend the academies programme are unlikely to boost pupils' achievement, a survey of teachers suggests.
A poll of almost 2,000 teachers reveals that more than eight in 10 of those working in the state sector believe schools should be run by councils.
Just one in six (16.2%) state teachers think that parents should be allowed to run state-funded schools, while 11.5% think private companies should be allowed to take charge.
The survey, by the Association of Teachers and Lecturers (ATL), found that more than a third (34.4%) of state teachers think the Government's academy programme will have "no impact" on attainment at their school, with a further 45.9% saying it is "unlikely" to make a difference.
In addition, more than three in 10 (31.8%) said that the free schools initiative will have "no impact" on achievement, with a further 44.1% saying attainment is "unlikely" to rise.
Free schools - a key plank of the Tories' education reforms - are not-for-profit schools set up by parents, teachers and other groups, using public funding.
So far, more than 700 groups have expressed an interest, but only 16 have got to the stage of putting a full plan together.
Academies were originally set up under Tony Blair's Labour Government, and the coalition Government announced plans to extend the scheme shortly after the election.
Education Secretary Michael Gove wrote to every primary, secondary and special school in England inviting them to apply for academy freedoms.
In total, as of last month, 142 had been given the go-ahead to convert.
Comedian and actor Sir Norman Wisdom has died at the age of 95.
His family said he died "peacefully" at the Abbotswood Nursing Home on the Isle of Man.
He had suffered a series of strokes over the past six months.
In a statement, the family said: "Sir Norman Wisdom has passed away at Abbotswood Nursing Home on the Isle of Man. Over the last six months Norman has sustained a series of strokes causing a general decline in both his physical and mental health.
"He had maintained a degree of independence until a few days ago. However, over the last few days his condition rapidly declined. He was in no pain or distress and peacefully passed over at 18.46 on October 4."
The family asked for time to grieve a "much loved father and grandfather".
Phil Day, who had been Sir Norman's publicist since 1969, paid tribute to him as a "lovely man" who was "100% professional".
Mr Day, who chose Sir Norman to be his daughter's godfather, said: "He never turned down any request. He never threw a tantrum. He was 100% professional all of the time. Of all the artists I've ever worked with, he's been the closest. It's a sad day."
He admitted the star could be "unpredictable", adding: "Whatever he said, you had to look for the tongue in the cheek to see if he was serious."
Mr Day added: "I have never met anyone in the profession who didn't like him, right up to royalty. I've been with him with members of the Royal Family and the hairs on the back of my neck have stood up at things he's said. I can't think of anyone else who could get away with it."
Two people have been arrested on suspicion of arson after a Victorian pier was severely damaged by fire, police have said.
The blaze, which was reported at around 1am on Tuesday, destroyed 95% of Hastings pier, East Sussex Fire and Rescue Service said.
Sussex Police said two males were detained and were being questioned about the cause of the fire on the pier, which has been closed since 2006.
Firefighters with eight fire engines were trying to extinguish the blaze, the fire service said. There were no reports of any injuries. Firefighters were also transported to the blaze by local RNLI lifeboats as they struggled to get the flames under control.
Campaigners in Hastings have been trying to raise money and support to see the pier refurbished with modern attractions. Designed by Eugenius Birch, it opened in 1872 and was originally 910ft long.
With the pier beset by financial problems, the council said it was prepared to buy it by compulsory purchase after a study this summer showed it could be made safe for £3 million. The pier was owned by Panamanian-registered company Ravenclaw.
Dale Turner, who runs the Seaspray bed and breakfast opposite the pier, attacked authorities for failing to get a compulsory purchase order through.
"This is the sort of thing people were worried about," the 55-year-old said. "The pier had been allowed to fall into ruin and now we may never get it back."
Hastings Borough Council leader Jeremy Birch said: "We are very disappointed that this fire has taken most of Hastings Pier's upper levels with it.
"The firefighters have worked heroically to try and contain the blaze but unfortunately because of the wind, the state of the pier and the danger of going on it, the fire really took hold. The council will now be looking at a new structural survey so that we can be absolutely clear on the degree of damage to the sub-structure."
Supermarket giant Tesco has unveiled a 12.5% rise in half-year profits to £1.6 billion.
The result came despite "modest" UK sales growth in the 26 weeks to August 28, constrained by higher fuel costs as customers spent more at the pump instead of in store, and due to low food inflation.
Delivering his last set of results, outgoing chief executive Sir Terry Leahy said the retailer - which plans to create 9,000 jobs in the UK this year - was experiencing "the tailwinds of recovery".
The firm said UK like-for-like sales excluding petrol rose 1.3% in the second quarter, compared with 1.1% in the first quarter - but, adjusting for VAT sales, the figure was just 0.3% higher over the half-year.
Finance director Lawrie McIlwee said UK like-for-like sales had been modest because "the economy is pretty stagnant" although there were "signs of a recovery".
He said higher food inflation last year made for tough comparatives, while higher fuel costs meant customers had less to spend in stores.
Looking ahead, Mr McIlwee said "the lapping effect" of inflation was decreasing and customers remained loyal.
He said there are now 16.5 million Clubcard holders in the UK, and added: "Tesco customers seem to be much more loyal than our competitors."
But Mr McIlwee said consumers in the UK still faced great uncertainties.
He said: "We've got the spending review and we've got VAT going up in the second half, but there are signs of a recovery."
Dissident republicans have been blamed for a car bomb attack in Northern Ireland.
No-one was injured in the blast in Culmore Road, Londonderry, but several business properties were damaged.
The bomb, which had been left in a Vauxhall Corsa, went off an hour after a telephone warning by the terrorists.
The worst of the damage was at Ulster Bank and the nearby Da Vinci's hotel and restaurant complex. Residents in a nursing home and houses in the area had been evacuated before the explosion just after midnight.
Two months ago a 200lb car bomb exploded outside a police station half a mile away in the city's Strand Road. Dissident republicans were also blamed for that explosion.
Police warned of massive traffic disruption in the city because of a follow-up security operation.
SDLP Mayor Colm Eastwood, who visited the scene, said he was disgusted by the attack. He said: "I do not know what these people are hoping to achieve. They say they love their country but they spend their time trying to destroy it.
"The people of this city will be very angry. It is just shocking that someone would put a bomb anywhere, but especially at a commercial centre."
Some people in Derry believe the bombing was timed to coincide with a visit to the Conservative Party conference later today by Sinn Fein Deputy First Minister Martin McGuinness, who lives in the city.
Former US president Bill Clinton visited the city last week.
Anger over City workers' pay packets is likely to be fuelled by new figures showing cash bonuses hitting £7 billion this year.
The Centre for Economics and Business Research (CEBR) said pre-tax City bonuses are continuing to recover to pre-credit crunch levels, although slightly lower than last year's pot of £7.3 billion.
Bankers and other City workers, such as fund managers, have largely been blamed for the financial crisis and recession.
But the CEBR said the taxman will take home more of this year's £7 billion bonus pot, which excludes share windfalls, after the new tax rate of 50% on incomes over £150,000 came into force.
Benjamin Williamson, CEBR economist, said: "Our research shows that the public coffers stand to gain considerably more from City bonuses than City workers themselves."
He added: "A whopping £7 billion bonus payout will be easier to stomach if the lion's share goes to the nation."
City workers - staff in investment banking, equities and bonds, derivatives, corporate finance and fund management - will take home around £3.2 billion after paying national insurance and income tax, CEBR said. But the Government will take around £4.1 billion in tax, as employers also have to pay main rate national insurance contributions of 12.8%.
Prime Minister David Cameron said people would be "angry" about the latest figures.
"I think the Chancellor was pretty clear yesterday when he said if these people go on paying themselves big bonuses and not lending money to the small businesses that need to get our economy going, he won't stand idly by," Mr Cameron told BBC Breakfast.
"People will be angry about this because people do see that the banks got out of control. That was part of the problem that contributed to our debts and our deficit, but the (former) Labour government have a very big share of the responsibility too."
Prisoners will be expected to work 40-hour weeks to raise money for victims of crime and help cover the cost of keeping them behind bars Justice Secretary Ken Clarke is to say.
The Government wants private firms to employ inmates in 9-to-5 jobs within prisons to end what Mr Clarke believes is a now a life of "enforced, bored idleness where getting out of bed is optional".
Plans are also being examined for a purpose-built private-sector factory prison where criminals could earn higher wages to further boost the cash generated by the system. Around a fifth of the money would be earmarked to compensate victims - a money-raising system promised in both coalition partners' general election manifestos.
Detailed plans for how to use the rest of the cash generated are still being examined but officials are looking at forcing offenders with families on benefits to directly fund their payments. More will be used to help meet the costs of running the prison system as the Ministry of Justice looks to find £2 billion of savings as part of the drastic Whitehall-wide spending review.
The policy is a revival of powers introduced by the last Tory government under John Major in 1996 but never implemented by Labour which allow money from work outside prison to be used to help victims. That would raise only £1 million a year from those held in open prisons however, so the Government is to extend the scope of the Prisoners' Earnings Act to cover money earned behind bars.
Mr Clarke has faced criticism from some sections of the Tories for pushing for a greater emphasis on rehabilitation and community sentences in a bid to cut the record prison population which last week hit 85,495.
But he will aim to win back support with a call for "hard work" to become the norm for offenders when he addresses party activists gathered in Birmingham.
"I want to revive a policy of John Major's last Conservative government and make deductions from the earnings of working prisoners to provide compensation for victims of crime," he is expected to say.
"In order to raise those funds, we need to instil in our jails a regime of hard work. Most prisoners lead a life of enforced, bored idleness, where getting out of bed is optional. If we want to reduce the crimes these people will commit when they get out, whilst boosting the amount that can be provided for victim support, we need as many prisoners as possible to work hard for regular working hours.
"We have to try to get those people who have the backbone, to go straight. To handle a life without crime when they have finished their punishment. So we will make it easier for prison governors to bring more private companies into their jails to create well-run businesses, employing prisoners in regular, 9-to-5 jobs."
Prime Minister David Cameron has insisted that his Government's plans to scrap child benefit for high-earners were "fair".
The change, announced by Chancellor George Osborne, applies to individuals earning £44,000 or more, but sparked controversy because it favours two-income households where both parents earn less than the threshold over families where one parent stays at home to look after the children.
A respected economic think-tank judged that some people would see this as unfair and warned that the move would "seriously distort" work incentives.
And Labour claimed the policy was "unravelling" after minister Tim Loughton suggested that the thresholds might need revising to iron out anomalies.
Mr Cameron insisted that changing the system to make it apply to household incomes, rather than individuals' pay, would require "an incredibly complicated means-testing system of bureaucracy for every family in the country", which he said would not be popular.
He said: "I do accept that this is a difficult decision, it is a tough decision, but I think it is fair to ask families who are better off to make a bigger contribution to dealing with the deficit so we can protect the poorest and most vulnerable people in our country.
"Under this change, child benefit will go on being paid to the 85 per cent of people who don't pay top-rate tax, and I think that is fair and right."
But within hours, an analysis by the Institute for Fiscal Studies (IFS) said some may regard the measure as "unfair" because it favours two-income families over those where one parent stays at home to look after children.
The IFS drew attention to consequences of the measures, which will mean a one-earner family with an income of £45,000 losing all its child benefit while a much better-off couple with an income of £40,000 each would keep the money. And it pointed out that a parent of two children with an income of £43,875 would actually lose money if given a pay rise of less than £2,975.
Mr Cameron told ITV's Daybreak: "Obviously we have this situation in the tax system itself. If you have one person earning £50,000, they pay top-rate tax, whereas if you have two people earning £25,000 they don't. This isn't a new principle."
The head of the UK's online child protection agency has quit over Government plans that would curtail the body's independence.
Jim Gamble, chief executive of the Child Exploitation and Online Protection (Ceop) Centre, offered his resignation over the proposed assimilation of the agency into a new National Crime Agency - a move which the agency said is not in the "best interest" of vulnerable children.
Others went further in criticising the Government's proposals, with Shadow home secretary Alan Johnson saying it would "harm child safety networks" and Sara Payne, campaigner and mother of murdered eight-year-old schoolgirl Sarah, adding she was "disgusted" by the Government's actions.
But Home Secretary Teresa May defended the plans, stating that the country did not need a "new quango" to carry out child protection work.
Mrs May praised the "great job" that Mr Gamble had done as chief executive of Ceop and wished him "all the best for the future".
Ceop was set up in 2006 tasked with tracking online paedophiles and bringing them to court.
It is currently affiliated to the Serious Organised Crime Agency (Soca), but under Government plans, the agency will become part of a greater National Crime Agency in 2013.
In a statement, Ceop said it was not in "the best interests of children and young people for Ceop to be assimilated into the National Crime Agency, as was announced a short while ago. This direction of travel does not seem to have changed and Ceop's chief executive, Jim Gamble, has therefore today offered his resignation to the Home Secretary with a four month notice period."
Prior to joining the agency, Mr Gamble served as head of Northern Ireland's anti-terrorist unit and as Ceop chief executive he led calls for Facebook to set up a "panic button" to give reassurance for young users.
Shadow Home Secretary Alan Johnson also praised the work of Mr Gamble, calling him a "passionate advocate for effective measures to protect children from evil individuals".
Police are questioning three men after a leading female tennis player was allegedly racially abused as she prepared for a tournament.
British number three Anne Keothavong, 27, posted a message on Twitter saying she was "disgusted" after being subjected to a "barrage" of abuse from a group of men.
She had just arrived in Barnstaple, Devon, ahead of the Aegon GB Pro-Series Open when the alleged incident took place on Sunday.
Keothavong wrote on the website: "I'm fuming. Just received a barrage of racial abuse from a group of guys as I walked from the car park to the hotel. Disgusted."
She added later: "I was on my own and completely outnumbered. Gave a statement to the police, hoping CCTV will get them."
London-born Keothavong is among five top-100 women players competing in the seven-day tournament.
A police spokesman confirmed that three men, aged 20, 23, 25, were arrested after the allegations were made by the tennis star.
He said: "Police can confirm that a 27-year-old woman from London has made an allegation of a racially-aggravated incident.
"Three men have been arrested for this offence and for a separate shoplifting incident.
"They remain in police custody waiting to be interviewed. Police investigations continue."
Police chiefs, campaigners and politicians have urged the Government to reconsider plans that would curtail the independence of the UK's online child protection agency after its head quit in protest.
Jim Gamble, chief executive of the Child Exploitation and Online Protection (Ceop) Centre, offered his resignation over the proposed assimilation of the organisation into a new National Crime Agency.
Ceop said he thought the change was not in the "best interest" of vulnerable children, while Sara Payne, campaigner and mother of murdered eight-year-old schoolgirl Sarah, said she was "disgusted" by the Government's actions.
The Association of Chief Police Officers (Acpo) said it was "in firm support" of Ceop remaining as a stand-alone agency, while shadow home secretary Alan Johnson went further, saying the Government's plans "will harm child safety networks".
"Their lack of consultation has led to the resignation of Mr Gamble, who is highly respected within and outside of the organisation he served so well. His expertise will be badly missed," he said.
But Home Secretary Theresa May defended the move, stating that the country did not need a "new quango" to carry out child protection work.
She said: "The Government recognises the importance of child protection and wants to build upon the work of Ceop, but does not necessarily feel this is best done by creating a new quango."
In a statement, Mrs Payne, Shy Keenan and Fiona Crook - who jointly set up the campaign group the Phoenix Foundation - said: "This is the worst possible news and a devastating blow for UK child protection. Jim Gamble changed the face of child protection for the better, forever.
"We cannot begin to describe how disgusted we are with our own Government for betraying him and for betraying all of our children. This cannot be allowed to happen, we must stand up and fight, we must do what is right for the protection of our children against the crimes of paedophiles."
Ms Keenan added: "You cannot approach child protection with a 'crime only' police unit. We need a pro-active child protection centre, not just a reactive police approach."
Sir Norman Wisdom was a "beloved comic genius" and "true icon of the entertainment world", the agency which discovered the comedian and actor has said.
The 95-year-old died peacefully at the Abbotswood Nursing Home on the Isle of Man on Monday, having suffered a series of strokes in the last six months.
Jan Kennedy, managing director of Billy Marsh Associates, the agency which discovered Sir Norman in the early 1950s, paid tribute to his "remarkable" career.
She said: "Norman was simply a beloved comic genius. His whole personality projected a childlike warmth and innocent appeal that touched the hearts of everyone.
"We all loved and admired him as a true icon of the entertainment world. He will be sorely missed and our heartfelt thoughts are with his family at this sad time."
Wisdom, at 5ft 4in, was the ultimate slapstick artist, toppling his pint-sized frame to the floor time and time again. From a poverty-stricken childhood, he starred in 32 sitcoms, 19 films and won Royal approval with a string of Command Performances. His success also made him a multi-millionaire knight of the realm.
In a brief statement, his family said: "He (Sir Norman) had maintained a degree of independence until a few days ago.
"However, over the last few days his condition rapidly declined. He was in no pain or distress and peacefully passed over at 18.46 on October 4."
Phil Day, who had been his publicist since 1969, said: "He never turned down any request. He never threw a tantrum. He was 100 per cent professional all of the time."
Johnny Mans, Sir Norman's agent for more than 30 years, told BBC News: "It's absolutely devastating. I thought he'd go on until he was at least 100 and get his telegram from the Queen. He was not only a client, he was my best friend."
Strong international growth helped Tesco overcome "subdued" demand and weak growth in the UK as it unveiled a 12.5% rise in half-year profits to £1.6 billion on Tuesday.
Higher fuel costs saw customers spend more at the pump and less in store, leading to like-for-like sales growth, excluding petrol and VAT, of 0.3% in the UK in the six months to August 28. This was made up of 0.1% growth in the first quarter and 0.4% growth in the second.
As the UK's largest supermarket, Tesco is struggling to make further gains at home in a fiercely competitive market, but international growth has been strong, lifting the group's overall performance, with sales up 8.3% to £32.9 billion.
Tesco now operates in countries including South Korea, Thailand, China, Japan, the United States and across central Europe, and has 20 million Clubcard holders outside the UK.
International like-for-like sales were up 2% to £10 billion, driven by a particularly strong performance in Asia, where trading profit was up 30% to £228 million.
Tesco said South Korea's Homeplus stores delivered an "outstanding performance" with 3.2% like-for-like sales growth, while sales in Tesco Lotus in Thailand were also "excellent".
Its US business Fresh & Easy is still loss-making, down £95 million in the period, and it was forced to close 13 stores.
But it did show 10% growth in like-for-like sales and the group expects to see Fresh & Easy breaking even by the end of 2012-13 financial year. It also unveiled plans to bring the chain up to 400 stores in California within two years, up from its current 168 outlets.
Finance director Lawrie McIlwee said UK sales, about two thirds of group revenues, had been modest because "the economy is pretty stagnant" although there were "signs of a recovery".
Looking ahead, Mr McIlwee said "the lapping effect" of inflation was decreasing and customers remained loyal.
Extradition to the US for a suspected al Qaida terrorist would breach his human rights and amount to an "abuse of process", his lawyer has told a court.
Abid Naseer, 24, is wanted for trial in America after being accused of being "deeply involved" in a plot to bomb the New York underground system and targets in Britain.
Ben Cooper, for Naseer, cited conditions in US "super max" prisons as one of the reasons for blocking the extradition.
"In due course, it will be submitted before this court that to permit Naseer to be tried in the US amounts to an abuse of process," he said.
Naseer, who appeared via video link from Belmarsh prison, was remanded in custody until November 2.
City of Westminster Magistrates' Court in central London has set aside December 15, 16 and 17 as provisional dates for a full extradition hearing.
Naseer was arrested in July in the north east of England by Metropolitan Police counter-terrorism officers after US authorities issued a warrant.
The US revealed it was bringing charges against Naseer and four other suspects over an alleged terrorist conspiracy.
Naseer, a Pakistani national formerly of Manchester, is alleged to have planned attacks on Manchester city centre and communicated with al Qaida leaders behind the plot.
The Government attempted to deport Naseer and a second man, Ahmed Faraz Khan, 26, to Pakistan, but a judge blocked the move on the grounds they could be tortured.
Prisoners will no longer live a life of "enforced, bored idleness" and instead be forced to work to pay compensation to their victims, Ken Clarke has said.
The Justice Secretary said he wanted prisons to become "tough places of hard work and reform" and ensure more private firms are brought in to rehabilitate offenders on a payment by results system.
Too many prisoners existed in a system where getting out of bed was "voluntary" and instead they should work nine to five jobs to gain a trade or skill, he told activists at the Conservative Party Conference in Birmingham.
Mr Clarke wants private firms to create the jobs for criminals and is even looking at the possibility of creating purpose-built workplace prisons where higher wages could generate even more cash.
Around one pound in five would be put in a fund for victims, with the rest used to cover the cost of keeping people behind bars, pay the benefits of prisoners' families or kept in trust for when they are released.
The Ministry of Justice is looking for around £2 billion of savings from its budget as part of the drastic Whitehall-wide spending review ordered by Chancellor George Osborne to tackle the UK's deficit.
Criminal justice campaigners welcomed Mr Clarke's plans, but they claim the jobs need to be meaningful and linked to the working world outside prison in a bid to help rehabilitate offenders before their release.
Graham Beech, strategic director for Nacro, the crime reduction charity, said: "Employment is one of the most effective ways of reducing reoffending, and equipping prisoners with the skills to get jobs on release will benefit the whole community.
"It is essential that employment options are meaningful and linked to labour market opportunities that will provide prisoners with the chance to have a productive future which benefits them, their families and their victims.
"But this must also involve engaging employers to provide opportunities and support them in the recruitment and retention ex-offenders."
