Osborne denies cuts mark 'nasty' attack on sick

Chancellor George Osborne yesterday defended his plans for further reductions in welfare spending, insisting they will be delivered by necessary reforms of the benefit system to ensure that those who can work, do work.

But Labour accused him of a "nasty" attack on the most sick and disabled people in society, following an interview last week in which he said he would cut 4 billion from welfare in next month's spending review, on top of 11 billion savings announced in the Budget.

Mr Osborne's comments exposed strains within the Conservative-Liberal Democrat coalition, and he was yesterday forced to come to the Commons to explain his plans by disgruntled Lib Dem backbenchers.

Hide Ad
Hide Ad

The Chancellor declined to discuss the 4 billion figure in his statement, prompting shadow work and pensions secretary Yvette Cooper to accuse him of "not being straight" with MPs – an allegation she was ordered to withdraw by Speaker John Bercow.

Ms Cooper said savings from forcing claimants who are fit to work off disability benefits were already included in Treasury costings, and the additional cuts would hit those who were genuinely ill.

"He is targeting those who are most sick and most disabled in society," she told MPs.

"Isn't the truth that he has decided to hit those he knows will find it harder to fight back? This isn't progressive, it's a nasty attack and he should withdraw it now."

Hide Ad
Hide Ad

She demanded to know whether Work and Pensions Secretary Iain Duncan Smith had agreed the 4 billion savings. A leaked letter from Mr Osborne on Sunday suggested that he and the Work and Pensions Secretary had agreed to slash 2.5 billion from Employment and Support Allowance alone, but Treasury Chief Secretary Danny Alexander said things had "moved on" since the letter was written.

Mr Osborne told MPs he had made clear in the Budget in June that he would be seeking further welfare reductions in the spending review. The welfare bill had risen 45 per cent in the last decade and ate up one-third of Government spending, he said.

It was "impossible" to conduct a spending review without looking at welfare.

"We are looking to do it in a way that actually reforms welfare – to help those millions of people who have been trapped for a decade or more on out-of-work benefits into work, help those with aspirations to improve their income, to make sure that work is rewarded by the benefits system," said Mr Osborne.

He dismissed allegations of a "turf war" with Mr Duncan Smith.