The Chancellor George Osborne is looking to cut the benefits available to some people who claim incapacity benefits as part of a bid to reform the welfare state.
The public expenditure cabinet committee is expected to meet for the first time this week and one of the first items on the agenda will be how Ministers are best able to protect those in genuine need while at the same time testing those unfit to work. Mr Osborne did not mention incapacity benefit in last week’s Budget but the new government is pledging to try and reduce the annual £12.5bn incapacity benefit bill.
The previous Labour government introduced tests to determine whether those claiming the benefit were genuinely incapable of working and early results indicated that only a third were fully entitled to claim. The Chancellor said that incapacity benefit would have to be included in the plans to reduce Britain’s £192bn welfare bill unless spending on schools and other public services were to suffer.