Osborne didn’t do his sums properly – now he’ll have to lift the ‘welfare cap’
Whitehall is making plans for a Commons vote on George Osborne’s welfare cap within a month, Sky News understands, in the clearest sign that the Chancellor has missed his self-imposed welfare cap.
The Treasury has struggled to alleviate the immediate £4.4bn cuts to tax credits this April, to provide a better transition to the Government’s aim of a “low welfare, low tax, high wage economy”.
Any slowing down of this year’s planned cut would have to be made up for by welfare cuts in other areas such as child benefit or housing benefit.
Sky News understands the additional cuts to housing benefit tomorrow are relatively modest in scope, in the hundreds of millions per year and nowhere near sufficient to mitigate a multibillion gap.
The problem arises because Mr Osborne, in addition to making sharp welfare cuts, chose to push down the welfare cap to the levels of welfare spending forecast in July by the Office of Budget Responsibility – £115bn in the 2016/17 financial year.
Source: Spending review: Welfare cap breach likely
Join the Vox Political Facebook page.
If you have appreciated this article, don’t forget to share it using the buttons at the bottom of this page. Politics is about everybody – so let’s try to get everybody involved!
Vox Political needs your help!
If you want to support this site
(but don’t want to give your money to advertisers)
you can make a one-off donation here:
Buy Vox Political books so we can continue
fighting for the facts.
Health Warning: Government! is now available
in either print or eBook format here:
The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:
how do these incompetent knuckleheads get into government ?
How much longer do we have to suffer this fool, if he had any backbone he would resign. He is causing a deep depression across the country which will only get worse.
Will he listen to anyone? it appears not.
More humiliation for Osborne and the boys, I think so!