George Osborne warned over benefit cuts

GEORGE Osborne’s plan for a real-terms cut in working-age benefits could increase poverty and have a “devastating” effect, Oxfam has warned.

The recently-published Welfare Benefits Up-Rating Bill, will face its first test on 8 January when MPs decide whether to give it a second reading.

The Chancellor announced in his autumn statement earlier this month that many benefits would rise by 1 per cent in each of the next three years, meaning the increase is below the level of inflation.

The change has already been announced for 2013-14, and the Bill will put the same restriction in place for 2014-15 and 2015-16.