Welfare to set overall cap to rein in benefits bill

George Osborne announced today that the total spent on a range of welfare payments including housing benefit, tax credits, disability and pensioner benefits will be subject to a limit.

The actual amount of the limit will be set next year.

Last year, taxpayers funded £112 billion in benefits, which all rose sharply in the decade before the economic crisis.

Next year, the Chancellor will receive a forecast from the Office for Budget Responsibility on how much the Government is expected to pay in benefits in 2015, taking into account inflation and other factors.

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