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Osborne sets out welfare cuts

Osborne sets out welfare cuts

George Osborne signalled welfare cuts and tax hikes on the rich today as he sought to keep his deficit-cutting plan on track.

In his Autumn Statement today, the Chancellor sought to combat a sharp rise in borrowing and downgraded growth projections with some good news on fuel duty and tax cuts for the lower paid. 

But Whitehall departments face a deeper cut and welfare claimants face a three-year 1% cap on their benefit, as part of a plan to save £3.5bn. 

“Those working in the public services, who have seen their basic pay frozen, will now see it rise by an average of 1%. A similar approach of a 1% rise should apply to those in receipt of benefits. That’s fair and it will ensure that we have a welfare system that Britain can afford,” Mr Osborne told the Commons.

Disability and carer benefits will continue to rise in line with inflation, while Mr Osborne also protected the state pension, announcing it will rise by 2.5% next year.

You can catch up with all today's developments with our Autumn Statement liveblog here. 

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