THE GRAPEVINE! news, comment & a bit of gossip, Welfare to Work

– Annual Welfare Bill to be reduced by £4 billion

In an interview with the BBC Rt Hon George Osborne, Chancellor of the Exchequer, announced that the government would be reducing the welfare bill by a further £4 billion.  This is in addition to the £11 billion cuts that were announced earlier in June this year.

Mr Osborne claims that this move will compel “benefit cheats to take up employment as there will be no cash to support their exploitative lifestyles”.  However, the Labour Party said that the coalition’s proposals would hit the poorest the hardest, in particular pensioners and disabled people, rather than the “work-shy”.

The combined £4 billion and £11 billion cuts represent 6 per cent of the government’s total expenditure on welfare.

Mr Osborne’s announcement was criticised by the Liberal Democrat MP, Bob Russell, who described the cuts as unethical and a “smokescreen”.  He said, “Yes, let’s deal with the welfare cheats. But the notion that they are responsible for all the ills of the nation is in fact a smokescreen and it’s not very ethical”.

British Broadcasting Corporation (BBC)
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I am not aware of the significance of this, but it has been said that this is not ‘a real’ story but that it was a timed announcement to deflect the media’s attention from the phone tapping story (?)

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