Housing benefit to be targeted in Osborne’s welfare cuts – IFS

Housing benefit could be cut by over 10% in George Osborne’s July Budget as the government attempts to deliver its commitment to reduce welfare spending by £12 billion in two years.

The Institute for Fiscal Studies said today that the pledge to protect child benefit from the social security cuts means HB, along with tax credits and disability/incapacity benefits, would “most likely” take the biggest hit.

Carl Emmerson, IFS deputy director, explained: “One area where the Conservatives’ manifesto commits to make cuts is in social security spending (outside of protected spending on state pensions and universal pensioner benefits). But finding the sought after £12 billion of cuts in just two years will not be easy.

“Cuts of this scale amount to almost 10% of unprotected benefits. Finding such a reduction without cutting child benefit, which has been pledged this week, would mean that even more significant cuts would likely be required to spending on one or more of tax credits, housing benefit and disability & incapacity benefits.”

Emmerson also suggested that the Department for Communities and Local Government was at risk from the chancellor’s spending cuts, which could have significant implications for future housebuilding programmes.

He said: “To meet its overall spending target, even delivering the £12 billion of cuts to social security spending would still leave the government needing a slight acceleration of cuts to departmental spending, compared to what we have seen since 2010–11.”

Emmerson added: “These cuts in departmental spending are to be far from evenly spread. Spending on overseas aid and the NHS is set to continue increasing in real terms, while schools’ spending per pupil is to be protected in cash terms. As we set out in our analysis of the main parties’ manifestos prior to the general election, this requires cuts elsewhere averaging 15.3% (or £30.0 billion) over the three years between 2015–16 and 2018–19.

“In other words two years of overall spending being cut by 1% a year, followed by a year in which overall spending is frozen, quickly becomes a 5.4% a year cut, for three years, for a swathe of public services. That would see a cumulative cut to these other unprotected departments over the eight years from 2010–11 of 32.9%.

“These unprotected areas include spending by the Ministry of Defence, the Home Office, the Ministry of Justice, the Department for Communities and Local Government, the Department for Business, Innovation & Skills, and the Department for Transport.

“Protecting defence from any further real cuts – which would still leave its budget falling further as a share of national income – would increase the cuts elsewhere over the next three years to 18.7%, and the cuts over the eight years from 2010–11 to 36.9%.”


The above article was Published by Rebecca McAdam for 24dash.com in Central Governmentand also in Bill Payments, Housing


13 comments

  1. Ita shocking. People are trying theyre hardest and the rich keep getting richer. Let them live on benefits for a few weeks. They will never survive. Stop the people coming into our country claiming all the benefits going and taking our jobs. They need 2 sort out priorties. We are getting targeted and its not fair

    Liked by 1 person

  2. Cutting HB isn’t the answer, MPs should make cuts in their own department and not to punish the sick and disabled. The tories got themselves in this mess and its them who should be punished and not us.

    Like

  3. Ur a joke people on housing benefit need it to have a roof over there head and it was only other week they were saying its an offence to sleep on streets hate this country no wonder people leave this shothole land you call united kingdom fu*kin tossers

    Like

    • i,m disabled and feel like the government will only be happy when theyve taken everything that means i can live a normal(ish) life, they’d be happy if we just fade away and die quietly, we have no protection from the stress and misery they want to inflict on top of the struggle we already face day to day, this government an absolute joke, protect the rich by burying the poor!!! sick and twisted

      Like

      • Hello Michelle, I guess the important thing is to all stick together in these scary times. Thanks for stopping by and leaving a comment, stay strong xx

        Like

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