Welfare cap (original) (raw)

The welfare cap 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 2014 United Kingdom budget. The policy took effect in 2015, and the limit for the financial year 2015–16 was set at £119.5 billion, amounting to 56% of total welfare spending. The operation of welfare cap is set out in The Charter for Budget Responsibility. The Office for Budget Responsibility (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 ye