William Eichler 27 April 2016

Welfare cap creates better understanding of Whitehall spending, NAO says

The welfare cap is encouraging a greater understanding of spending across government, according to the National Audit Office (NAO).

The cap, which is a limit on the amount of state benefits a household can claim in one year, has increased departments' oversight of spending on benefits and tax credits, according to the NAO.

The National Audit Office, the body responsible for scrutinising public spending, says the level of attention to spending forecasts has increased across government and at the Office for Budget Responsibility (OBR).

It offers OBR warnings over tax credits as an example. The OBR announced last year that the cap was breached owing to the government's decision to reverse some of its proposed reforms to tax credits.

The NAO does warn, however, that there is a risk the current scope of the cap may create an incentive for the Government to keep claimants on Jobseeker's Allowance instead of encouraging them into work and increasing entitlement to in-work benefits.

The auditors also found several areas in which analysis and forecasts could be improved. At the moment, interactions between benefits are not dealt with systematically and the OBR is not always given enough time to review all forecasts.

Amyas Morse, head of the NAO, said: ‘Forecasts will always be uncertain but when spending is projected to be close to or over the cap, weaknesses in forecasts may affect policy or operational decisions.

‘All departments involved should therefore move quickly to improve their processes.’

SIGN UP
For your free daily news bulletin
Highways jobs

Finance and Admin Co-ordinator - Children's Social Care

Essex County Council
£25743 - £30286 per annum + + 26 Days leave & Defined Benefit Pension
Finance and Administration Co-ordinator - Children's Social CarePermanent, Full TimeUp to £30,286 per annumLocation
Recuriter: Essex County Council

Business Relations Officer

West Northamptonshire Council
£26516 - £28013
We have an exciting opportunity within the West Northants Council. We are looking for a Business Relations Officer to support the Supported Living Review Team. This team is working closely with our Commissioning colleagues to review all current Learning D Northampton
Recuriter: West Northamptonshire Council

Senior Direct Payments Officer

West Northamptonshire Council
£29060 - £30712
To provide an effective, customer focused support service to people and children who are in receipt of Direct Payment. The post will support the Direct Payment Team Leader by managing the daily tasks for staff and lead the team through the effective use o Northampton
Recuriter: West Northamptonshire Council

Independent Domestic Violence Advisor - 2 Year Fixed Term

Essex County Council
£30931 - £35362 per annum + + 26 Days Leave & Defined Benefit Pension
Independent Domestic Violence AdvisorFixed Term, Full Time£30,931 to £35,362 per annumLocation
Recuriter: Essex County Council

SEND Assessment & Review Officer

Royal Borough of Greenwich
£39,951 - £42,840
In the SEND Assessment & Review Service, we continue to invest in meeting the needs of children and young people Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.