Osborne is promising further huge cuts in welfare spending to avoid deeper departmental cuts. While refusing to put a precise number on the size of the welfare cuts, Osborne accepted they would run into "many billions" of pounds.
The chancellor sees welfare as one of the defining political issues at the next election in 2015, and believes his hard-line approach will create difficulties for the Labour opposition.
This makes it more likely that veiled hints that they will do away with the Work-related activity group in the next parliament will come true.
Source: The Guardian