Chancellor threatens further welfare cuts
George Osborne has today raised the prospect of further welfare spending cuts in the next spending review.
The chancellor, in his Budget speech this afternoon, said that even with the measures passed in the Welfare Reform Act, which was aimed at reducing and simplifying benefits, the welfare budget is set to rise to consume a third of all public spending.
Mr Osborne said: ‘If nothing is done to curb welfare bills further, then the full weight of the spending restraint will fall on departmental budgets.
‘The next spending review will have to confront this’.
The Treasury has published an analysis showing that welfare savings of £10 billion would have to be made by 2016 to prevent cuts to other departmental budgets.
The current spending review period ends in 2014/15.