Benefits Freeze – End Link with inflation

Yet again due to the countries financial predicament welfare benefits are to be possibly targetted by George Osbourne. He is trying to cut welfare benefits and costs by 10 billion by 2016.
The idea being that savings in these areas will lessen cuts in services such as schools and hospitals.
Ministers are now looking at ways to freeze benefits for two years. The Guardian disclosed under one option they could then allow some benefits to rise only in line with average earnings, rather than with inflation, which has increased at a higher rate in recent years. The changes, which were disclosed on Newsnight on Monday 17th September, could save up to £7 billion if applied to 90% of benefits.
No decisions have been made but ministers are understood to believe the effect could be lessened by limiting the changes to working-age and exempting others. Disability benefits and pensions could be left unchanged.
The Lib Dems who fought hard against the abandonment of the link to inflation in 2011 accept tough choices will have to be made, possibly by imposing a freeze on benefits but then retaining the inflation link.
We will have to wait for the chancellor’s autumn statement in two months time to hear the breakdown of the “difficult choices” that have to be made.

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