Osborne to cut another £10bn from benefits
- 08 Oct
George Osborne will announce at the Conservative conference his ideas for cutting a further £10bn from the welfare bill. Mr Osborne told the BBC the better-off would have to pay more in taxes, but the budget could not be balanced "simply on the wallets of the rich".
Osborne is expected to will rule out a levy on high-value properties which has been sought by Lib Dems.
The chancellor will promise to cut £10bn more from the welfare bill by 2016-17, on top of the £18bn cuts announced in 2010, as the economic downturn lasts longer than expected.
In his address, Osborne will spell out ideas for cutting the welfare bill, such as limiting housing benefit for the under-25s, so that young people without a job have to live at home; possible further curbs on child tax credits; and allowing benefit increases to be lower than the rate of inflation.
Options for Welfare Bill Cuts:
1. Limiting housing benefit for the under-25s
2. Further curbs on child tax credits
3. Benefit increases to be lower than the rate of inflation.Deputy Prime Minister Nick Clegg told his own party's conference last month that he would not allow "wild suggestions" of a £10bn cut in welfare and Chief Secretary to the Treasury Danny Alexander told delegates: "We simply will not allow the books to be balanced in a way that hits the poorest hardest."
The Lib Dems advocate a "mansion tax", under which owners of homes worth more than £2m would pay a 1% annual charge on property values above that level.
Mr Osborne is expected to rule out such a measure, which is unpopular among Conservative MPs.
But he told BBC Radio 4's Today programme that taxes for the most well-off would be increased in some form "in the years ahead", saying:
You can't just balance the budget on the wallets of the rich. We've got to look at a very large welfare bill and find savings there.
The rich are paying more in tax than they did in any one year of the last Labour government.In his speech, the chancellor will say a further £16bn of savings must be found in 2015/16 alone to meet his target of balancing the UK's budget within five years.
Mr Osborne is keen to present a united front with Work and Pensions Secretary Iain Duncan Smith, following reports the Treasury wanted to scrap the work and pensions secretary's new Universal Credit over fears costs and complexity were spiralling out of control.
Mr Duncan Smith is understood to have initially resisted the welfare cuts proposal, arguing savings should be found by means-testing benefits such as free bus passes and winter fuel payments for better-off pensioners.
Source: BBC News
Related articles
- 08 Nov
NHS BOSS SETS OUT A CASE FOR CASH BOOST
The speech by Mr Stevens at the NHS Providers' annual conference of health managers is being made at the time when three reputable health think-thanks- the Health Foundation, the King's Fund and the...
- 09 Jun
THERESA MAY PLEDGES TO REPLACE THE MENTAL HEALTH ACT 1983
According to Ms May, the new bill would introduce the following:According to the Tories, the proposals were described as the biggest change to mental health treatment law in over 30 years.Ms May...
- 30 May
THE PRESENT FIRST PRIME MINISTER OF SCOTLAND IS TO PLEDGE AGAINST ANY PLANS TO PRIVATISE THE NHS
It is also expected that Sturgeon will do the following as proof of her party's commitment to fighting against further austerity:Sturgeon said this before Tuesday's manifesto launch:"While the polls...
- 17 Mar
402 MILLION POUNDS WILL BE INVESTED IN COUNCILS WITH THE GREATEST HOMELESSNESS DEMAND FROM APRIL 2017
Presently, funding is only used for homeless households and not for the prevention of homelessness in the first instance.The funding by the Department for Communities and Local Government is set to...
- 15 Mar
RULES AROUND PERSONAL INDEPENDENCE PAYMENTS MAY CHANGE ON THURSDAY
Ministers have advised chief executives of over 30 charities which claimed that people will be left without vital financial support, to restrict access to a disability benefit.The Disability Benefits...
- 06 Mar
THE GOVERNMENT HAS BEEN URGED BY THE BMA TO INCREASE HEALTH SPENDING BY 10 BILLION POUNDS
This increase in health spending to a proportion of GDP that matched that of the 10 leading economies across Europe could pay for at least 35,000 extra beds a day and many more GP's, according to the...
- 05 Sep
MANY DOMESTIC VIOLENCE REFUGES AT RISK OF CLOSING DUE TO HOUSING BENEFIT CAP
Women who have been victims of domestic violence as well as their children are at risk of falling into the hands of their violent partners if the government caps housing benefit in the social sector...
- 03 Sep
Data on disability benefits refused by DWP
DWP officials have refused a second request for basic information on disability benefits using the “Section 22” exemption they used previously, reports The Independent.The Department had been...
- 02 Sep
UN to investigate how welfare reforms will affect disability rights
A disability charity in Scotland has said it’s been contacted by the UN’s Committee on the Rights of Persons with Disabilities as part of an inquiry into Britain’s treatment of people with...
- 01 Sep
Benefit cuts affecting 48,500 families in Liverpool
Analysis from Liverpool City Council has found that around 48,500 households are likely to lose their benefits due to new government reforms, reports the Liverpool Echo. Councillor Jane Corbett has...
Responding to the DWP Consultation: Housing Benefit Reform - Supported Housing "Found the seminar very informative and gave an interesting and full insight into current thinking about the consultation. Michael was a very engaging and knowledgeable presenter and encouraged interaction with the audience which led to further relevant points being shared with the room. I shall certinaly look out for future events!" M.E. - Care Housing Association
