Osborne proposes two-year welfare benefits freeze to reduce budget deficit

This article was last updated on April 16, 2022

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British chancellor George Osborne has proposed on Monday a tougher stance on economy by the Conservative Party to freeze welfare benefits for two years to tackle the U.K.’s budget deficit if they get elected after general election 2015.

While delivering a speech at the annual Conservative conference in Birmingham, Mr Osborne has told that Prime Minister David Cameron’s Tory-led government had been successful in reducing the deficit by almost half after coming into power in 2010, but added that “difficult decisions… are still required to fix the economy” and balance the books.

The finance minister has pledged to squeeze state benefits for the working-age population for two years from 2016 excluding pensions, maternity payments and disability help, claiming that the proposed measure would aid in saving ﾣ3.2 billion a year by 2017.

Mr Osborne has said: “The fairest way to reduce welfare bills is to make sure that benefits are not rising faster than the wages of the taxpayers who are paying for them. For we will provide a welfare system that is fair to those who need it, and fair to those who pay for it too.”

The Treasury Chief has added: “And to those in work I say this – where is the sense in taxing you more only for you to be given some of your own money back in welfare. The best way to support people’s incomes is to make sure those out of work get a job and those in work pay less tax.”

After the announcement was made, the coalition partner Liberal Democrats have hit out on their plans as a senior Lib Dem source said: “The Liberal Democrats have consistently blocked Conservative attempts to freeze benefits for the working age poor, just as they have blocked our attempts to cut benefits for the wealthiest pensioners.

“It speaks volumes about the priorities of the Conservative Party that they see benefit cuts for the working age poor as a crowd-pleasing punch-line for a conference speech.”

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