If the Conservatives win the next election they will freeze most working age benefits for two years from April 2016, the chancellor George Osborne has announced. Disability benefits, including personal independence payment and disability living allowance will not be affected, however. The chancellor also announced that those who inherit large sums in pension funds are to be given a tax cut.{jcomments on}
Benefits that will be frozen include:
- The work-related activity component of employment and support allowance
- Jobseeker’s allowance
- Local housing allowance
- Universal credit
- Tax credits
- Child benefit
- Income support
Benefits that will not be affected include:
- Disability living allowance
- Personal independence payment
- Maternity and paternity pay
- Statutory sick pay
- Statutory adoption pay
Osborne expects to save up to £3.2bn a year from these cuts.
Meanwhile, tax cuts for those who inherit pension funds of up to £1.25 million will cost the taxpayer around £150 million a year.
