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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Lawyer

East Cambridgeshire District Council
£38,510 to £44,253 per annum plus benefits
Are you building your legal career and ready to take on broader responsibility? Ely, Cambridgeshire
Recuriter: East Cambridgeshire District Council

Senior Lawyer

East Cambridgeshire District Council
£47,665 to £51,928 per annum plus benefits
We are looking for a confident and experienced Senior Lawyer Ely, Cambridgeshire
Recuriter: East Cambridgeshire District Council

Senior Practitioner - Children & Young People with Disabilities

Essex County Council
£48205.0000 - £57988.0000 per annum
Senior Practitioner - Children & Young People with Disabilities - Mid EssexPermanent, Full Time£48,205 to £57,988 Per Annum Location
Recuriter: Essex County Council

Neighbourhood Highways Engineer (Northern)

Devon County Council
£46,579 - £50,908 per annum
We are recruiting an experienced and collaborative Neighbourhood Highway Engineer to help keep Devon’s highway network safe, resilient and moving. Taw View, Barnstaple, EX32 2SU or Tiverton Business Park, EX16 6T
Recuriter: Devon County Council
Linkedin Banner