Welfare freeze

The Government would cut social security spending by £3 billion, if the Conservatives won the next general election, due  in May 2015.

George Osborne, Chancellor of Exchequer, has promised freeze on benefits in his speech to the Conservative Party conference, that was held in Birmingham on Monday.

In order for the country to pay its debts and drive down its deficit, 10 million Britons will have their benefits frozen for two years, while 18 to 21-year-olds could claim unemployment benefits for a limited period of time only. Measures also include plans to lower limit by £ 3,000 to £ 23,000 on households.

“Welfare spending makes up a third of the entire Government budget. We are going to live in a country where the elderly have dignity in retirement and the vulnerable and people with disabilities are protected. But we can’t afford to live in one where we spend £100 billion on welfare payments for people of working age. (…) it is not sustainable for any nations and it is not fair, either”, Mr Osborne said.

Talking about Britain’s economy in 2010, he added: “Four years ago our country was on the floor (…) but we picked ourselves up, we sorted ourselves out and we got back in the fight.  We set out a long economic term and worked through it (…). I believe it is perfectly possible for Britain to be the most prosperous country on earth”.

Just two days after the Chancellor’s speech, Prime Minister David Cameron promised tax cuts worth more than twice that and with inflation predicted to be running at around 2 per cent, it will mean a real terms cut, to reduce the deficit.

Meanwhile Work and Pensions Secretary, Iain Duncan Smith, is testing prepaid cards for benefits claimants, that could only be used to buy food and other essentials.

The ‘smart cards’, meant to stop claimants from spending benefits cash on drink and gambling, were previously blocked by Liberal Democrats, who considered the plan to be a way to stigmatise people and reduce their freedom to spend money as they wish.

“Benefits paid should go to support the wellbeing of their families, not to feed their destructive habits”, has highlighted Mr Duncan Smith, referring to those parents who have fallen into drug or alcohol addiction.