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Budget welfare cuts could 'hit poorest households' Budget welfare cuts could 'hit poorest households'
(35 minutes later)
The chancellor is likely to be accused of unfairly targeting some of Scotland's poorest households in his Budget. The chancellor has been accused of unfairly targeting some of Scotland's poorest households in his Budget.
George Osborne is unveiling the first Tory-only budget for 18 years. George Osborne unveiled the first Tory-only budget for 18 years to MPs at the House of Commons.
He pledged to reduce the welfare bill by £12bn - although this will now be over three rather than two years.He pledged to reduce the welfare bill by £12bn - although this will now be over three rather than two years.
The SNP and Scottish Labour have warned the cuts could hit the least well off in society hardest.The SNP and Scottish Labour have warned the cuts could hit the least well off in society hardest.
First Minister Nicola Sturgeon has also said measures expected to be detailed by the chancellor could put the economic recovery in Scotland under threat.
This is George Osborne's seventh budget, but his first as part of a majority Conservative government.This is George Osborne's seventh budget, but his first as part of a majority Conservative government.
He told MPs it was a "budget for working people" and a "one nation budget".He told MPs it was a "budget for working people" and a "one nation budget".
'Very expensive''Very expensive'
The Chancellor announced that the benefits cap will be cut from the present £26,000 that a family can claim in a year to £20,000 for those living outside London - a move which he says will save more than £1.5bn.The Chancellor announced that the benefits cap will be cut from the present £26,000 that a family can claim in a year to £20,000 for those living outside London - a move which he says will save more than £1.5bn.
Mr Osborne said the Budget would take Britain "from a low wage, high tax, high welfare economy, to the higher wage, lower tax, lower welfare country we intend to create".Mr Osborne said the Budget would take Britain "from a low wage, high tax, high welfare economy, to the higher wage, lower tax, lower welfare country we intend to create".
He also announced changes to child tax credits, limiting them to two children for new claimants.He also announced changes to child tax credits, limiting them to two children for new claimants.
Among the other measures announced by the chancellor were:Among the other measures announced by the chancellor were:
Mr Osborne said the changes announced would save £9bn on the welfare budget by 2020.Mr Osborne said the changes announced would save £9bn on the welfare budget by 2020.
However Shelter Scotland described the move to stop 18-21 year-olds claiming housing benefit as "shameful, unjustified and cruel".
Director Graeme Brown said: "This completely removes the safety net that is in place to protect young people whose circumstances often prevent them from staying in or returning to the family home.
"Whether it's someone fleeing an abusive relationship or thrown out of their home, or someone caught between jobs a long way from home, we have a duty to support young people."
Tax credits provided £2bn in additional cash to households in Scotland in 2013-14, with two-thirds going to help families in low-paid work with children.Tax credits provided £2bn in additional cash to households in Scotland in 2013-14, with two-thirds going to help families in low-paid work with children.
Ahead of the budget, the Scottish government said a 10% cut in child tax credit would cost Scottish families £150m a year, while a 10% cut in all tax credits would leave households £250 million worse off.Ahead of the budget, the Scottish government said a 10% cut in child tax credit would cost Scottish families £150m a year, while a 10% cut in all tax credits would leave households £250 million worse off.
According to the SNP, reducing child tax credits to 2003 levels would result in the loss of £650m, or £425m if this was adjusted for inflation.According to the SNP, reducing child tax credits to 2003 levels would result in the loss of £650m, or £425m if this was adjusted for inflation.
Ms Sturgeon said the tax credits "form an important part of the tax and welfare system, designed particularly to support working families on low incomes". First Minister Nicola Sturgeon said the tax credits "form an important part of the tax and welfare system, designed particularly to support working families on low incomes".
"More than 500,000 children in Scotland benefit from tax credits," she said. "Two-thirds of the £2bn expenditure on tax credits in 2013-14 went to low-income working families with children and only 5% to households without children."More than 500,000 children in Scotland benefit from tax credits," she said. "Two-thirds of the £2bn expenditure on tax credits in 2013-14 went to low-income working families with children and only 5% to households without children.
"If, as we expect, the UK government targets tax credits for cuts in the Budget, it will hit Scotland's poorest children and families hard. It is a frightening indication of the potential impact of the expected cuts in the UK Budget.""If, as we expect, the UK government targets tax credits for cuts in the Budget, it will hit Scotland's poorest children and families hard. It is a frightening indication of the potential impact of the expected cuts in the UK Budget."
Mr Osborne has previously said tax credits had become a "very expensive" system, costing £30bn.Mr Osborne has previously said tax credits had become a "very expensive" system, costing £30bn.
'Root causes''Root causes'
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.
He 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.He 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.
Speaking ahead of Mr Osborne's budget statement, Shadow Scottish Secretary Ian Murray said it was "working people who will bear the brunt" of the cuts.Speaking ahead of Mr Osborne's budget statement, Shadow Scottish Secretary Ian Murray said it was "working people who will bear the brunt" of the cuts.
The Labour MP said: "With their proposed cuts to tax credits, the budget risks cutting the feet from under people who do the right thing, go out to work every day and try to do the best by their families.The Labour MP said: "With their proposed cuts to tax credits, the budget risks cutting the feet from under people who do the right thing, go out to work every day and try to do the best by their families.
"This government needs to be tackling the root causes of the rising welfare bill - low pay and rising housing costs - to bring down the deficit in a sustainable way.""This government needs to be tackling the root causes of the rising welfare bill - low pay and rising housing costs - to bring down the deficit in a sustainable way."