George Osborne announced that spending on benefits will be capped year on year in the drive to bring the country’s financial deficit under control.{jcomments on}

For our members there will certainly be losers due to the reduction in benefit spending, as those who become sick and unable to work after October 2014 will have to wait 7 days before being eligible for any Employment & Support Allowance.

This announcement brings the ESA waiting period in line with the rules for claiming Universal Credit.

For those who become too sick to work or seek work, this will inevitably cause concern, as claimants will have to consider whether they can afford to be sick for a week without receiving any form of income.

Other announcements include an increase in the earnings limit for those in receipt of Carers Allowance (up to £102 per week), new powers for HMRC to recover tax credit debts from bank or savings accounts and increasing the maximum debt recovery rates from ongoing tax credits awards – up to 50% from 25%.

Obviously this will be of concern to those who have alleged overpayments of tax credits, as appeals against HMRC decisions are notoriously difficult to challenge and take many months (or longer) to get to an appeal hearing.

For the full budget statement click here


Write comments...
or post as a guest
Loading comment... The comment will be refreshed after 00:00.

Be the first to comment.

We use cookies

We use cookies on our website. Some of them are essential for the operation of the site, while others help us to improve this site and the user experience (tracking cookies). You can decide for yourself whether you want to allow cookies or not. Please note that if you reject them, you may not be able to use all the functionalities of the site.