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Home News Benefit cap shattered by £8.6BILLION thanks to surge in universal credit and disability payments

Benefit cap shattered by £8.6BILLION thanks to surge in universal credit and disability payments

by Abella
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According to the government, higher expenditure for benefits of universal credit and disabled people contributed to an expected infringement of £ 8.6 billion from the welfare ceiling.

Work and Pensions Secretary Liz Kendall confirmed that the predominance convenience was added to MPS to MPS in a written statement, the addition of 'no action' was taken by the previous Tory administration to prevent this.

The Welfare Place was introduced in 2014 in an attempt to limit the amount spent on certain social security benefits and tax credits, such as the life of a disability, child benefit and pension credit.

The government has set up a new welfare limit for this parliament and Mrs. Kendall said that the Ministry of Work and Pensions will outline a plan to ensure that the expenditure is on a 'sustainable path'.

The conservatives said they had promised in the general elections to reduce the views of well -being by £ 12 billion, the addition of Labor 'seems to be set to another course' with a potential increase in '42% 'in the welfare cap In the next five years.

In a written ministerial statement, Mrs. Kendall said: 'The budget responsibility office has made a formal assessment that the welfare limit of the previous government and the margin for 2024/25 are on its way to be exceeded by £ 8.6 billion and is therefore not met.

'According to the terms of the charter for the responsibility of the budget, I am obliged to lay a paper for the house that proposes measures to reduce the expenses within the level of the limit or to explain why the infringement as is considered justified.

'The forecast break, in particular on the basis of expected higher spending for universal credit and disabilities, is inevitable in fact the inheritance of the last government.

Benefit cap shattered by £8.6BILLION thanks to surge in universal credit and disability payments

Work and Pensions Secretary Liz Kendall confirmed that the predominance convenience was added to MPS to MPS in a written statement, the addition of 'no action' was taken by the previous Tory administration to prevent this.

The Welfare Place was introduced in 2014 in an attempt to limit the amount spent on certain social security benefits and tax credits, such as the life of a disability, child benefit and pension credit.

The Welfare Place was introduced in 2014 in an attempt to limit the amount spent on certain social security benefits and tax credits, such as the life of a disability, child benefit and pension credit.

Shadow Treasury Richard Fuller said:

Shadow Treasury Richard Fuller said: “Now that the country now spends more than £ 156 billion on well -being every year, and with clear pressure on government spending, there must be a determination to find savings in the welfare budget.”

'The likely scale of the final infringement has been known since March 2023. The previous administration was undertaken to avoid this.

'Although this government has already shown that it will not shun difficult decisions, this infringement could only have been tackled by implementing immediate and serious cuts on welfare expenses. This would not have been the right way of acting.

“The forecast breakage underlines the failure of the previous government to control the expenditure of well -being and the failure to raise real reforms to bring more people to work.”

Mrs. Kendall said that the government has an ambition to reach an employment rate of 80%, and adds: 'We give radical reforms to increase employment and standard standards, to get a grip on the benefit account and the system more fairly to make.'

Proposals to reform the health and disability system is expected to be published in the spring, said Mrs. Kendall.

Shadow Treasury Minister Richard Fuller said speaking in the commons that the welfare hood has “shown its value in the past decade.”

He added: 'Because the country now spends more than £ 156 billion on well -being every year, and with clear pressure on government spending, there must be a determination to find savings in the welfare budget.

“Indeed, that was the intention of the conservative party in the last elections with a commitment to reduce the expenditure by £ 12 billion.”

Mr Fuller continued: 'The Labor Government seems to be set to a different course today, with a path for the Welfare Cap, an increase of 42% in the welfare cap. '

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