Which are the welfare measures that save the most money?

I have taken a look at the table of savings from welfare changes. The most striking thing is how slowly they kick in. The saving in the next financial year is a mere £320m. The next year it rises to £2.6bn, then comes another big jump to £6bn and the final year of the review brings a saving of £7bn.

The biggest items in the final year saving of £7bn are

1. £2.5bn through not paying child benefit to families where there is a higher rate taxpayer.

2. £2.0bn Contributory Employment and Support Allowance: time limit for those in the Work Related Activity Group to one year.

3. £1.8bn increase of contributions to their pensions by public sector workers.

Source: Table 3 on Page 12 of the Comprehensive Spending Review

Posted by James Bartholomew • Indexed in Pensions • Reform • Welfare benefits

Comments (0) TrackBack (2)