How to make a more accurate estimate of cost of the government’s welfare reforms
A government study has warned that welfare reforms would cost the country up to £12bn by 2031.
A study by the Department for Work and Pensions (DWP) said the government would have to spend more than £1bn on “social care, health and welfare support” to meet the target of lifting the budget deficit to 2.5 per cent of GDP by 2020.
The DWP said the costs would increase to £14bn by 2021 if the government “does not take a new approach” to reducing poverty, as it released its “reduction plan”.
The department said the “unfair” nature of the new rules would force it to increase its spending on the welfare state to meet its targets.
“The government must now take a bold new approach to tackling poverty and ensure that benefits are paid for and maintained in a sustainable way,” said the DWP.
The government’s “reduce plan” is due to be unveiled on Tuesday.
The DWP is expected to set out its new spending plans for the benefit system by the end of the month.
The department has said the cuts would have a significant impact on families, communities and the wider economy.
In February, the government scrapped the controversial Work Capability Assessment (WCA), which was designed to help claimants assess their ability to work, but critics said it was being used to try and make the government meet its budget targets.