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

Cleaner

Durham County Council
£24,796 (Pro rata)
Cleaner Grade 1, £24,796 (Pro rata) Permanent, part time. 12.5 hours per week Currently 3.30pm to 6pm Monday to Friday (subject to change depending on Durham
Recuriter: Durham County Council

Outreach Support Assistant

Durham County Council
£32,597 - £36,363
Outreach Support Assistant x 6 Grade 8, £32,597 - £36,363 Permanent, full time. Required to start ASAP.   We are seeking to appoint to the Secondary O Ferryhill
Recuriter: Durham County Council

Tenant Support

Durham County Council
Grade 2 - £24,796 - £25,185 (pro-rata)
If you have elderly friends and relatives, you will understand the value they place on independence. This role will give you the opportunity to work Consett
Recuriter: Durham County Council

Home Care and Support Worker

Durham County Council
Grade 4 - £25,583 - £26,824 (pro-rata)
We currently have multiple vacancies available including permament part time and a casual role. If you have elderly friends and relatives, you will u Consett
Recuriter: Durham County Council

Data Science and Innovation Officer

Durham County Council
Grade 12 £44,075 to £48,226 per annum
We are looking to appoint two enthusiastic, hardworking, and motivated Data Scence and Innovation Officers to join Durham’s Data & Insight service. On Spennymoor
Recuriter: Durham County Council
Linkedin Banner