Welfare benefits are set to cost about £1.4 billion more than previously expected over the next four years because of rising unemployment, according to the Government's independent financial watchdog. The unemployment benefit bill is to be £700 million higher than thought, while the cost of housing assistance will also grow by £700 million because of larger numbers of people claiming jobseeker's allowance or falling into lower wage brackets, the Office for Budget Responsibility found. Its analysis is based on the revised unemployment estimate after the June budget, when it changed its forecast from 6.3% to 6.5% for 2014. Since then the forecast has been revised upwards again, to 6.7%, but no costing has been carried out for that figure yet. Read more on 24dash.
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