New limits on welfare hidden in the budget

Budget speech screenshot

The latest budget speech has more welfare cuts buried deep within.

From Hansard, emphasis mine:

“Ultimately as a country we will not be able to spend more on the services we all value, from our NHS to our armed forces, or invest in our infrastructure, unless we go on tackling the growth of spending on welfare budgets. The public spending framework introduced by the previous Government divided Government spending into two halves: fixed departmental budgets and what is called annually managed expenditure—except in practice it was annually unmanaged expenditure—and it includes almost the entire welfare budget as well as items like debt interest and payments to the EU. I can tell the House that according to the OBR forecast today, the European budget deal secured by my right hon. Friend the Prime Minister has saved Britain a total of £3.5 billion. We will now introduce a new limit on a significant proportion of annually managed expenditure. It will be set out in a way that allows the automatic stabilisers to operate, but it will bring real control to areas of public spending that had been out of control. We will set out more detail on how this new spending limit will work at the spending round in June. All decisions, on welfare, pay and Departments are tough, and they affect many people. But if we did not take them, what is a difficult situation for them and for the whole country would be very much worse.”

Update

TouUCstone, a TUC blog, has already written about the impact of this. Thanks to hindleA for posting the link in the comments.

 Touch Stone Blog: Annually Managed Expenditure: a bang or a whimper?

Author: Latentexistence

The world is broken and I can't fix it because I am broken. I can, however, rant about it all and this is where I do that when I can get my thoughts together. Most of the time you'll find my words on Twitter rather than here though. I sometimes write for Where's The Benefit too.

3 thoughts on “New limits on welfare hidden in the budget”

  1. More here-http://touchstoneblog.org.uk/2013/03/annually-managed-expenditure-a-bang-or-a-whimper/

  2. This is very concerning. Millions of people are already facing a plethora of benefit cuts that will cause a big increase in homelessness and severe hardship.. The government has cut back very service I use as a chronically disabled person, and along with bedroom tax and other cuts, along with others, I’ll be barely subsisting.

    If limits to the welfare budget have stabalisers, and so your income will reduce dependent on how many disabled people, along with other claimants like families and JSA claimants, there really will be mass homelessness, a humanitarian disaster in the UK.

    Just when you’ve come to terms with a massive drop in living standards, something else appears designed to cause fear and stress. I don’t think some people can take much more uncertainty about the future.

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