Welfare bill set to soar by £1.4bn

Welfare benefits are set to cost about £1.4 billion more than previously expected over the next four years because of rising unemployment, according to the government's independent financial watchdog.

The unemployment benefit bill is likely to be 700 million higher than previously estimated, while the cost of housing assistance will also grow by 700m because of larger numbers of people claiming jobseeker's allowance or falling into lower wage brackets, the Office for Budget Responsibility has found.