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| George Osborne: £12bn in welfare savings have been found | George Osborne: £12bn in welfare savings have been found |
| (34 minutes later) | |
| Chancellor George Osborne says he has identified how the government will make the £12bn of welfare cuts promised in the Conservative election manifesto. | Chancellor George Osborne says he has identified how the government will make the £12bn of welfare cuts promised in the Conservative election manifesto. |
| He will announce the bulk of the savings in his Budget on Wednesday, the BBC understands. | He will announce the bulk of the savings in his Budget on Wednesday, the BBC understands. |
| Those known so far include a reduction in the benefit cap and removing subsidies for social housing. | Those known so far include a reduction in the benefit cap and removing subsidies for social housing. |
| Mr Osborne is also expected to announce the BBC will have to meet the £650m cost of TV licences for over-75s. | |
| 'Higher earners' | 'Higher earners' |
| Mr Osborne said the welfare cuts were needed to prevent even deeper cuts to public services and to fulfil the government's aim of eliminating the deficit and running a surplus. | Mr Osborne said the welfare cuts were needed to prevent even deeper cuts to public services and to fulfil the government's aim of eliminating the deficit and running a surplus. |
| "So yes, we've got to find savings in welfare - and we have found that £12bn of savings in welfare that we said we'd be able to find in the election," he said. | "So yes, we've got to find savings in welfare - and we have found that £12bn of savings in welfare that we said we'd be able to find in the election," he said. |
| The headline Budget announcement over the weekend was a clampdown on "taxpayer-funded subsidies" for "higher earners" living in social housing in England. | The headline Budget announcement over the weekend was a clampdown on "taxpayer-funded subsidies" for "higher earners" living in social housing in England. |
| But Mr Osborne also announced: | But Mr Osborne also announced: |
| The benefit cap is likely to affect 89,000 households and save £1.67bn over the next five years, according to Treasury sources. | |
| Mr Osborne confirmed he would be seeking to make cuts to tax credits for people on low incomes, which had become a "very expensive" system, costing £30bn. | Mr Osborne confirmed he would be seeking to make cuts to tax credits for people on low incomes, which had become a "very expensive" system, costing £30bn. |
| 'Austerity cult' | 'Austerity cult' |
| He said the low paid would be compensated by tax cuts in an effort to end the "merry-go-round on which people pay their taxes and then get back benefits" and firms would be encouraged to pay higher wages. | He said the low paid would be compensated by tax cuts in an effort to end the "merry-go-round on which people pay their taxes and then get back benefits" and firms would be encouraged to pay higher wages. |
| Shadow chancellor Chris Leslie said Labour backed the benefits cap but Mr Osborne should introduce tax breaks for employers that pay the "living wage", which is £9.15 an hour in London and £7.85 elsewhere, as a way of boosting people's incomes. | Shadow chancellor Chris Leslie said Labour backed the benefits cap but Mr Osborne should introduce tax breaks for employers that pay the "living wage", which is £9.15 an hour in London and £7.85 elsewhere, as a way of boosting people's incomes. |
| He told Andrew Marr: "If we can finally persuade George Osborne to U-turn and back some incentives for a living wage, that I think would be very welcome. | He told Andrew Marr: "If we can finally persuade George Osborne to U-turn and back some incentives for a living wage, that I think would be very welcome. |
| "But don't underestimate how important some of these tax credits have been, not just helping people be able to afford to be able to go to work - all those travel costs, childcare costs and so forth - but also there's an important principle about helping the very most vulnerable in society." | "But don't underestimate how important some of these tax credits have been, not just helping people be able to afford to be able to go to work - all those travel costs, childcare costs and so forth - but also there's an important principle about helping the very most vulnerable in society." |
| Meanwhile, Mr Leslie suggested that Labour could back the chancellor's move to make the BBC pick up the £650m bill for free television licences for the over-75s, but wanted to see the full details before deciding. | Meanwhile, Mr Leslie suggested that Labour could back the chancellor's move to make the BBC pick up the £650m bill for free television licences for the over-75s, but wanted to see the full details before deciding. |
| The SNP said Mr Osborne's Budget would be a "sermon from an austerity cult - cutting where it is not necessary and weakening further the chance of a sustained recovery". | The SNP said Mr Osborne's Budget would be a "sermon from an austerity cult - cutting where it is not necessary and weakening further the chance of a sustained recovery". |
| Housing subsidies | Housing subsidies |
| Under the planned changes to housing subsidies, local authority and housing association tenants in England who earn more than £30,000 - or £40,000 in London - will have to pay up to the market rent, Mr Osborne will say. | Under the planned changes to housing subsidies, local authority and housing association tenants in England who earn more than £30,000 - or £40,000 in London - will have to pay up to the market rent, Mr Osborne will say. |
| The move is expected to raise up to £250m a year by 2018-19. | The move is expected to raise up to £250m a year by 2018-19. |
| It is thought that this could affect 340,000 households. | It is thought that this could affect 340,000 households. |
| The change - which will cost tenants on average up to £70 extra a week - will build on measures introduced under the coalition government that enabled housing associations and local authorities to charge market rents to those on incomes of more than £60,000. | The change - which will cost tenants on average up to £70 extra a week - will build on measures introduced under the coalition government that enabled housing associations and local authorities to charge market rents to those on incomes of more than £60,000. |
| Extra money from those living in local authority properties will go straight to the Exchequer. | Extra money from those living in local authority properties will go straight to the Exchequer. |
| The Budget will also confirm the end of inheritance tax on family homes worth up to £1m. | The Budget will also confirm the end of inheritance tax on family homes worth up to £1m. |
| Mr Osborne is expected to tell MPs on Wednesday the threshold at which the tax is levied will rise for couples from £650,000 after April 2017. | Mr Osborne is expected to tell MPs on Wednesday the threshold at which the tax is levied will rise for couples from £650,000 after April 2017. |
| The chancellor is not expected to outline the £30bn in departmental spending cuts that the Institute for Fiscal Studies says he will need to find over the next three years on Wednesday - these are likely to be set out in the autumn in a spending review. | The chancellor is not expected to outline the £30bn in departmental spending cuts that the Institute for Fiscal Studies says he will need to find over the next three years on Wednesday - these are likely to be set out in the autumn in a spending review. |
| Are you affected by issues covered in this story? You can email haveyoursay@bbc.co with your comments. Please leave a contact number if you're happy to be contacted by BBC journalist. | Are you affected by issues covered in this story? You can email haveyoursay@bbc.co with your comments. Please leave a contact number if you're happy to be contacted by BBC journalist. |