45:(OBR) is required to report periodically on whether the cap has been met or exceeded. The OBR initially made its assessments annually in the Autumn, but since 2017 the cap is only assessed at the first Budget of a new Parliament. Welfare spending was initially required to be less than the cap every year, but since 2017 this has been replaced by a medium-term welfare cap and welfare spending is assessed for a single year chosen by
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143:"there is more spending that is not in the welfare cap (albeit virtually all state pension) than is within the cap. Overall, 30% of spending from within the welfare cap is on the richest half of society but 40% of the protected spend".
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are not included in the overall cap on welfare spending. In June 2014, leaked internal documents suggested that the
Coalition government could breach its own welfare spending cap. This was confirmed in the 2015 Spending Review.
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In
January 2022 the House of Commons approved a change to the welfare cap allowing it to qualify as one of the "fiscally neutral classification changes" which do not require approval from Parliament.
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is a self-imposed limit on the amount that the government of the United
Kingdom can spend on certain social security benefits and tax credits. The welfare cap was first introduced in the
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The OBR judged that the welfare cap was being breached in its 2015 and 2016 assessments, requiring a
Government minister to justify the excess spending to the
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that introduced the welfare cap, the policy was supported by the Labour shadow cabinet but thirteen Labour MPs opposed it, including future party Leader
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34:. The policy took effect in 2015, and the limit for the financial year 2015–2016 was set at £119.5 billion, amounting to 56% of total welfare spending.
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This article is about the limit on total government welfare spending. For the limit on the benefit that an individual household can claim, see
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In accordance with the 2014 Budget the welfare cap was set at £119.5 billion in 2015/16 and increased to £126.7 billion in 2018/19. However,
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think-tank argued that the welfare cap appeared to be the result of ideology rather than an aim to tackle the underlying causes of
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on both occasions. Forecasts for 2017–18 and 2018–19 both indicated significant expenditure on social security outside the cap.
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criticised the way in which the welfare cap was more likely to include benefits claimed by the poorest in society:
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268:"Labour MPs should oppose the welfare cap – here's why | James Bloodworth | Opinion | The Guardian"
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The welfare cap was supported by nearly all
Members of Parliament, passing by 520–22. During the vote on the
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for the financial year 2024–25 with the cap set at £135.4 billion for that year.
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the OBR made its Autumn 2017 assessment for the financial year 2021–22. The
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71:'s wide-reaching welfare reform agenda which included the introduction of
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364:"Spending cap won't tackle causes of welfare dependency, say critics"
195:(Report). House of Commons Library briefing paper. 2 March 2017.
290:"Government 'could breach its own welfare spending cap'"
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and reforms of housing benefit and disability benefits.
345:"Labour MPs should oppose the welfare cap – here's why"
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Welfare reform in the United
Kingdom (2010-Present)
308:"Guidance: Benefit expenditure and caseload tables"
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326:"MPs approve annual welfare cap in Commons vote"
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170:United Kingdom government austerity programme
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37:The operation of welfare cap is set out in
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211:"Labour welfare cap rebels: the full list"
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16:Limit on UK government welfare spending
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57:led to a subsequent assessment at the
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39:The Charter for Budget Responsibility
250:"Research Briefing: The welfare cap"
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421:Under-occupancy penalty/Bedroom Tax
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343:James Bloodworth (26 March 2014).
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147:Also in 2014 Faiza Shaheen of the
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123:and future Shadow Home Secretary
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495:Welfare Reform and Work Act 2016
312:Department for Work and Pensions
43:Office for Budget Responsibility
362:Phillip Inman (19 March 2014).
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256:. UK Parliament. 24 March 2023.
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231:Keep, Matthew (16 June 2020).
103:Positions of political parties
67:The policy was a facet of the
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500:Housing and Planning Act 2016
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453:Personal Independence Payment
209:George Eaton (6 March 2014).
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165:Poverty in the United Kingdom
135:In 2014 Chris Goulden of the
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235:. House of Commons Library.
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119:, future Shadow Chancellor
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137:Joseph Rowntree Foundation
109:2014 United Kingdom budget
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149:New Economics Foundation
521:Welfare Reform Act 2012
490:Welfare Reform Act 2012
115:, future Deputy Leader
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89:Jobseeker's Allowance
55:2019 general election
51:2017 general election
69:Coalition government
447:Council Tax Support
314:. 21 November 2018.
153:welfare dependency
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233:"The welfare cap"
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483:Legislation
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117:Tom Watson
131:Criticism
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274:24 March
159:See also
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41:. The
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