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

Community Facilitator level 1

Royal Borough of Greenwich
Scale 5 - £31,524 to £32,931
We are seeking to fill a number of roles to help us deliver our new vision for Health and Adults Services (HAS) Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Personal Advisors

Royal Borough of Greenwich
£38,934 - £40,755
This is a rewarding, challenging and essential role, in our support of young people Leaving Care. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

School Crossing Patrol Officer - Ivy Chimneys School

Essex County Council
Up to £13.00 per hour
School Crossing Patrol Officer - Ivy Chimneys SchoolPermanent, Part Time£13.00 per hourLocation
Recuriter: Essex County Council

Director - Corporate Services

Teignbridge District Council
£93,688 - £100,549 per annum
Develop your career with a forward-thinking authority based in an attractive part of South Devon. Newton Abbot, Devon
Recuriter: Teignbridge District Council

Operational Support Officer

North Yorkshire Council
£29,064 - £31,537
We are recruiting Operational Support staff within our growing Housing Standards Team. Harrogate, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner