Austin Macauley 18 November 2014

Welfare reforms fail to deliver expected savings finds report

The Government’s programme of welfare reforms has fallen way short of its target to reduce spending by £19bn this year – opening the door to further benefit cuts.

Analysis by the Institute for Fiscal Studies (IFS) shows spending on pensioner benefits and housing benefit are far higher than Government anticipated. Overall, it has delivered just £2.5bn of savings on social security spending since 2010.

Despite announcing cuts of more than £2bn, spending on housing benefit will be £1bn higher this year in real terms than in 2010 as a result of falling wages and rising private rents.

Delays in replacing disability living allowance have meant that instead of delivering a £1.2bn cut to DLA spending, the Government has actually spent £1.6bn more.

‘All this has important fiscal consequences,’ said the IFS. ‘Working-age benefit spending has always been sensitive to the unemployment rate. But the rapid growth of housing benefit and tax credits over the couple of decades means that slow earnings growth now has the potential to push up spending too.

‘Much of the hoped-for savings from the introduction of ESA [employment and support allowance] have failed to materialise, and it is an open question whether the personal independence payment will be any different.

‘Mr Osborne wants further cuts to social security spending to help reduce the deficit. He may end up having to make cuts just to stay on track.’

SIGN UP
For your free daily news bulletin
Highways jobs

Activites Assistants (CASUAL)

Durham County Council
£24,404 (12.65 p.a. hour) - £25,183 (£13.05 p.a. hour)
This is an exciting opportunity for Casual Activities Assistants to join our Leisure and Sport Service.   Leisure Centres are
Recuriter: Durham County Council

Pension Administration Officer

Durham County Council
£24,404 to £25,183 p.a. (Grade 3) Pay award pending
A vacancy has arisen within Pension Services for an Administration Officer to provide admin and data support to the pensions team and members of the L Durham
Recuriter: Durham County Council

County Attendance Officer

Oxfordshire County Council
£37035 - £39513
We are seeking to recruit to the role of County Attendance Officer on a permanent basis to work predominately across the North or the South of the county. The team works across the whole of Oxfordshire so flexibility to work in other areas is also require County Hall, Oxford
Recuriter: Oxfordshire County Council

Software Engineer Starter

West Northamptonshire Council
£26914
We're looking for an exceptional human to join our digital team to learn the skills and put them into practice, designing, developing and maintaining websites, mobile apps & AI. You'll join us on our journey as we create better end-to-end services for our Northampton
Recuriter: West Northamptonshire Council

Executive Director - Growth, Enterprise and Environment

Redcar & Cleveland Borough Council
£139,111.00 (pay award pending)
This is a chance to make a significant difference to the lives of families across our borough – and to seriously improve your quality of life. Redcar and Cleveland House, Kirkleatham Street, Redcar, TS10 1RT
Recuriter: Redcar & Cleveland Borough Council
Linkedin Banner