BIRMINGHAM – George Osborne made a pitch to the electorate on Monday: Vote Conservative if you want the government to spend less money on people who haven't got a job.
The chancellor told his party's annual conference in Birmingham that the Tories will not increase most welfare payments to adults for two years if they win the next general election.
Jobseeker's allowance, tax credits, universal credit, child benefit, income support, and other work-related benefits will be frozen for two years. Housing benefit will also be frozen.
Assuming that the cost of living continues to rise, this means most working-age adults who rely on state benefits would see their income fall in real-terms.
Afterwards, Osborne's aides told journalists the benefits cuts are "a difficult decision" but part of "a choice to make about how to deal with the deficit".
In the first year, the cuts to benefits will save £1.6 billion, which Osborne said he would use to pay down the deficit. The saving would then increase to £3.2 billion in the second year.
Osborne also confirmed plans to reduce the total amount of benefits any household can receive from £26,000 a year – roughly the average wage in the UK – to £23,000.
Pensioners and disabled will not see their benefits cut. Instead, Osborne announced plans to abolish inheritance tax on many pensions, enabling the money to passed on to younger people.
