George Osborne prides himself on his commitment to bear down on welfare spending, but today’s report from the OBR (handily commissioned by the Chancellor) shows how he’s struggling. It warns that the new cap imposed on expenditure is in danger of being breached due to the botched implementation of disability benefit reforms and the surging housing benefit bill.
Between March 2011 and March 2014, forecast spending on incapacity benefits for 2015–16 has been revised up by £3.5bn (34 per cent) due to a higher than expected caseload, slower than expected transfer from incapacity benefit to the new employment and support allowance, and a lower than expected number being found “fit for work” (and therefore ineligible for full support).
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