In his Spending Round statement in parliament, Chancellor George Osborne announced a range of measures to “end the unfairness of the something for nothing culture of welfare”.
He said that the budget for the Department for Work and Pensions will be cut by 9.5 per cent in 2015/16.
In addition an annual cap on welfare spending will be introduced from April 2015, with the government having to explain itself if it exceeds that limit.
David Holmes, chief executive of Family Action, which provides services for disadvantaged families, said that the “sacrifices” imposed by Osborne would “create a damaging knock-on effect for low income and disadvantaged families".
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