Home George Osborne Could Breach His Own Welfare Spending Cap

George Osborne Could Breach His Own Welfare Spending Cap

Must Read

Number of Brits suffering from malnutrition has soared under the Tories

Labour described the shocking increase in malnutrition cases as "unforgivable" and said government ministers "should be ashamed".

Benefit claimant with broken back killed himself after being found ‘fit for work’ by DWP

He was left pennniless and unable to pay the rent or top up his electricity meter.

Universal Credit staff poised for further walk-outs

PCS union warns that strike action could spread to more Universal Credit Services Centres.

UK pensioners ‘suffering the worst poverty rate in western Europe’

Tories warned against further rises to the state pension age.

George Osborne is in danger of breaching his own self-imposed cap on government welfare spending, with Whitehall said to making plans to hold an emergency Commons vote within a month.

The Chancellor was forced to rethink and slow down £4.4bn in cuts to tax credits after the House of Lords voted to delay the changes, leaving George Osborne scrambling to find other welfare cuts to meet the target.

SKY News reports that rumored cuts to Housing Benefit, expected to be announced by the Chancellor on Wednesday, will not generate sufficient enough savings to fill the gap.

However, it has been reported that Child Benefit and Universal Credit could also be targeted for cuts.

The government lowered the welfare spending cap to £115bn for 2016/17, in response to spending forecasts by the Office of Budget Responsibility (OBR) – who also monitors compliance with the cap.

SKY News says George Osborne could find himself stuck in a policy trap that was originally meant to embarrass Labour.

A Westminster source told SKY News that Mr Osborne will almost certainly breach the cap, meaning he would have ask MPs in the House of Commons for more money.

“It’ll be breached … he’s not going to get it for next year”, the Westminster source said.

Deputy Director of the Institute for Fiscal Studies Carl Emmerson said: “Back in July the Chancellor decided he wanted to cut £12bn off welfare and he lowered the level of the welfare cap so he’s got no wiggle room against that.”

The government is said to be trying to allocate a date for the vote in the busy commons schedule.


SUPPORT US!

If you would like to see more stories like this please consider a one off donation. Thank you for your support!

14 COMMENTS

    • Osborne’s changes announced today will close all women’s DV refuges,
      will evict massive number of disabled people, will affect single people
      hit by bedroom tax even if not under occupying and will create the
      DISABLED ROUGH SLEEPER and the WOMAN FLEEING VIOLENCE AND ABUSE ROUGH
      SLEEPER who will have nowhere to live to escape sleeping rough as the
      hostels and permanent rehousing options will not be available to move
      them off the streets!

      Read on and have the smelling salts to hand as you simply will not
      believe just how much of an incompetent fuckwit George Osborne is!

      IF you are hit by the bedroom tax AND you are under 35 AND you have
      no dependant children living with you then you have just been evicted.
      Note well that you have to be under 35 and single with no dependant children yet the impact of this is massive

      • the Comprehensive Spending Review (CSR) today and this is the
        sneakiest of sneaky changes and will create a new group previously
        unheard of in the DISABLED ROUGH SLEEPER.

        Imagine you are unable to work through whatever medical, physical,
        learning or sensory disability you have and you live in a social housing
        2 bed house in low rent Liverpool. Your rent will be around £86 per
        week and you will be getting the 14% bedroom tax taken off you and so
        receiving £73.96 per week in housing benefit.

        HOWEVER this change above means your maximum eligible rent for HB
        purposes will only be £57.77 per week which is the Shared Accommodation
        Rate or SAR for Liverpool.

        You will receive £49.68 in housing benefit only and a reduction of
        £24.28 per week in your maximum HB as the maximum eligible rent before
        bedroom tax deductions is the SAR of £57.77 and no longer the £86.00 per
        week actual rent.

        You will need to find £36.32 per week or £1,893.83 per year to top up your rent or £157.82 per calendar month!

      • Even if you move to the mythical 1 bed property with a rent of say
        £78.00 per week and avoid the pernicious bedroom tax, if you are single
        and under 35 you will only get £57.77 per week as the maximum Housing
        Benefit and still have to find £20.23 per week or £1054.85 per year or
        £87.90 per calendar month to pay your rent.

        Note too the Shared Accommodation Rate does NOT hold a blank
        exemption for receipt of DLA or PIP or ESA and in the support group so
        if you are disabled under 35 and have no child dependants then your
        housing benefit will be cut.

      • So if you receive DLA at low rate or you receive ESA and in the
        support group or WRAG group or you do not receive the daily living
        component of PIP then the SAR does apply to you. This change is going
        to affect a huge amount of bedroom tax households as we know from DWP’s
        own figures that 63% of bedroom tax households contain a disability.

        You can see why Osborne has today created the DISABLED ROUGH SLEEPER and just how pernicious this policy change is.

        My figures above reveal that this will see disabled single persons
        evicted in the lowest rent areas which of course means it will happen in
        all areas of the UK.

        Lets not forget that in some low rent areas of the UK social rent is
        actually higher than private rent levels as the CIH stated this week in
        their pay MORE to stay (PMS) submission below and also not forgetting
        that the PMS policy which DOES affect the pensioner in England too!

      • Yet this policy which sets the maximum social housing rent for single people under 35 will also see DV refuges close!

        I advised 17 refuges and developed their funding streams from 2001 to
        2003 during the Transitional Housing Benefit System which became
        Supporting People. The rents paid by housing benefit necessarily
        include the costs of staffing, fixtures and fittings and so much more –
        nobody flees domestic violence and abuse with a kitchen sink, beds,
        bedding etc strapped to their backs in very crude terms – and housing
        benefit pays for this.

        YET evidence I have gathered from those admitted to refuges reveal
        that about 30% – 35% of women are single with no child dependants and so
        this SAR change means instead of the refuge receiving say £230 per week
        per person, if the women is under 35 and single they will receive about
        £80 per week as a national average – a reduction of £150 per week in
        the refuge income or £7,800 per year

        So crunching some numbers – if a refuge has 12 rooms and each person
        stays 3 months they have 48 women accommodated in a year. If 35% of
        these are single then the refuge lose 17 lots of £7,800 and its yearly
        income reduces by £33,150 and means that DV refuge closes as this is a
        23.1% reduction in income. It cannot mean anything else!

        So now we see Osborne’s SAR changes creating another new client group in the FLEEING DOMESTIC ABUSE ROUGH SLEEPER!

      • In reality this means refuges will not be able to accommodate
        childless single women under 35 regardless of the fact they would never
        want to do this meaning in essence that “Sorry, you will have to stay where you are and have the shit kicked out of you!!” Or ” By all means come back when you’re 35 providing you live that long!”

        The same principle of HB costs applies to all supported housing /
        supported living schemes so means that those with a learning disability
        or mental health condition whose rents include costs for staffing, white
        goods, furniture, etc, etc, etc and it can even include salt grit bins
        and lightning conductors as well as tea towels, cups and saucers etc
        etc…..will also close. It will also include all single homeless hostels
        who could not possibly guarantee you can stay there for 3 months as how
        could HB departments possibly accept such a statement from hostel
        providers.

        So the major route out of rough sleeping – homeless hostels – and
        probably the better route of the housing first option – are now not
        available because of this SAR change by the most incompetent fuckwit we
        have ever had as a chancellor.

        George Osborne the man who killed supported housing

        George Osborne the man who killed off DV refuge provision and whose
        policy here will DIRECTLY see more women dying of domestic violence and
        abuse

        George Osborne the man whose policy here DIRECTLY evict disabled people from their homes

        George Osborne the man whose policy here DIRECTLY increases rough sleeping ten fold or will it be a hundred fold?

  1. GEORGE Osborne’s own department blew almost a grand in taxpayers’
    cash on a breakfast on the same day that he slashed tax credits.

    The Morning Star can reveal that aides who helped the Chancellor
    prepare and present the cuts budget were treated to a complimentary
    breakfast on budget day.

    A freedom of information request found officials gobbled down £972 worth of publicly funded food at the Treasury on July 8.

    Hours later, Mr Osborne revealed cuts to working tax credits that
    could see three million families lose £1,200 a year on average.

    The Chancellor told the Commons that “many difficult but necessary decisions are required to save money.”

    But the sum his department spent on breakfast would be enough to keep a family out of poverty for a year.

    Mr Osborne has claimed the tax credit cuts are offset by the introduction of a higher minimum wage of £7.20 on the same day.

    It would still, though, take a worker on the minimum wage 135 hours to earn enough to cover the bill for the Treasury breakfast.

  2. is the man such a simpleton that he thinks he can fool the uk population
    only brainwashed tory sympathizes
    the fact that they voted em back in makes that fact
    lying backtracking theiving scumbags

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

FOLLOW US

16,637FansLike
9,363FollowersFollow

Latest News

Universal Credit staff poised for further walk-outs

PCS union warns that strike action could spread to more Universal Credit Services Centres.

Number of Brits suffering from malnutrition has soared under the Tories

Labour described the shocking increase in malnutrition cases as "unforgivable" and said government ministers "should be ashamed".

Jeremy Corbyn: Tories failing homeless children and poverty-stricken families

Labour leader vows to end the benefit freeze and halt the rollout of Universal Credit.

Half of private landlords say tenants on Universal Credit have rent arrears

54% of private landlords have tenants on Universal Credit who have fallen behind on rent payments.

130,000 families forced to live in one bed flats due to chronic social housing shortage

Calls for a £12.8bn national investment in social housing building.

More Articles Like This