Osborne to cut £4bn from welfare bill
Updated on 10 September 2010
Chancellor George Osborne signals a crackdown on the "out of control" welfare budget while announcing cuts of £4bn will be made to the bill in the spending review this autumn.
The cuts are on top of an £11bn reduction announced in June's emergency budget.
The chancellor said he wanted to tackle those who saw claiming out-of-work benefits as a "lifestyle choice" but he failed to rule out changes to help such as the winter fuel allowance and prompting criticism from two Liberal Democrat MPs.
Bob Russell and Mike Hancock accused the chancellor of failing to consult the Tories' coalition partners and criticised his decision to announce the fresh assault in a television interview.
Mr Osborne used an interview with the BBC to confirm that further reductions in benefits would form part of his package of severe cuts to public spending to be unveiled on 20 October.
"This will be done in a way that encourages people into work but there will be further welfare cuts - they will amount to several billion pounds additional to what I announced in the budget because I think the people of this country understand this choice and they have chosen for us as a government to push further on welfare reform," he said.
"There are five million people living on permanent out of work benefits. That is a tragedy for them and fiscally unsustainable for us as a country - we can't afford it any more," he added.
"Of course, people who are disabled, people who are vulnerable, people who need protection will get our protection, and more.
"But people who think it is a lifestyle choice to just sit on out-of-work benefits - that lifestyle choice is going to come to an end. The money won't be there."
Mr Osborne would not be drawn on exactly where the axe would also fall amid concerns universal benefits such as the winter fuel payment and child benefit could be targeted.
David Cameron repeatedly rejected Labour claims during the general election campaign that his party would cut benefits for older people as "lies".
Pressed on whether they would be protected, Mr Osborne said: "We will honour the agreements we set out which said we were going to protect key benefits for elderly people. We will stick with what we've promised people."
Mr Hancock said a further £4bn cut would go "right to the heart" of the benefits system and hit the poorest - and joined Mr Russell in saying he would vote against any such measure.
Their party leader, Deputy Prime Minister Nick Clegg, earlier sought to calm public fears over deep spending cuts but admitted the coalition was likely to suffer a backlash.
