Tuesday, 16 July 2013

Osborne In New Benefits Cap Threat

The controversial overall benefit cap was introduced on Monday at the level of the average salary of £26,000, amid claims that it will force many families into hardship.  But reports now suggest that Conservative MPs want it cut further to £20,000 as part of an assault on welfare spending if Tories win the 2015 general election.  An aide confirmed that Mr Osborne had received representations on lowering the cap, adding: "We want to see how the policy beds in. But clearly over time, lowering the cap is an option."  Backbench Tories argue that the £26,000 cap is still higher than the average wage, because workers would have to earn £35,000 before taking home that much after tax. They calculate that a cut to £20,000 could save a further £840 million a year.  Read more on the Express and Star website.

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