Thursday 9 September 2010

Benefit Claimants to Have Payments Cut

THE TELEGRAPH: Benefits claimants will have their payments cut as ministers seek a further £4 billion in welfare cuts.

George Osborne, the Chancellor, said that the Government will go further than previously announced in trying to bring down the cost of Britain’s social security system.

The promise of new welfare cuts has caused strain in the Coalition, with some Liberal Democrat MPs protesting against the move.

Mr Osborne said the welfare system had grown out of control and allowed some people to make the “lifestyle choice” of claiming benefits for their entire life instead of working.

Reforms being drawn up by the Coalition will give welfare claimants “a strong incentive” to get a job.

Welfare now costs £192 billion a year, almost a third of all government spending. An estimated 5 million people of working age are now economically inactive and receiving benefits.

In the Budget in June, Mr Osborne announced that benefits cuts will save £11 billion a year by the end of the Parliament.

In a BBC interview, he signalled that ministers will now seek deeper cuts, reducing welfare spending by another £4 billion. >>> James Kirkup and Andrew Porter | Thursday, September 09, 2010