Tuesday, 24 June 2014

DWP Denies Risk of Breaching Welfare Spending Cap

The DWP has denied that the government risks breaching its self-imposed cap on welfare spending because of the rising cost of disability benefits.  Leaked documents suggested that the government was running out of options to cut costs, while employment and support allowance (ESA) costs continued to rise. Internal government memos reportedly said that the ESA was "one of the largest fiscal risks currently facing the Government", leaving it "vulnerable to a breach" of the cap, which was set at £119.5bn for 2015-16. According to the documents, the cost of ESA was projected to rise by nearly £13bn between the current financial year and 2018-19, largely due to people moving on to the benefit from jobseeker's allowance, which has more sanctions for misconduct. Read more on the Guardian website.

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