George Osborne spending £25bn more on benefits than planned, says Labour

Same Difference

With many thanks to Benefits And Work.

Chancellor George Osborne is having to spend £25bn more on welfare than he planned this parliament because of rising demand for housing and disability benefits, Labour claimed on Sunday.

Figures commissioned from the House of Commons library by Ed Balls, the shadow chancellor, and Rachel Reeves, the shadow work and pensions secretary, suggest the bill for welfare is still predicted to go up significantly despite Conservative party claims to be saving money on benefits. Labour said a key cause of the higher than expected spending is that more people in work are having to rely on benefits because of low wages, as well as mismanaged reforms at the Department for Work and Pensions.

Their analysis of official figures suggests the government has overspent by £1.4bn on housing benefit for people in work, with the number of claimants increasing by more than 50% since…

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