This article is about the limit on total government welfare spending. For the limit on the benefit that an individual household can claim, see benefit cap.
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.[1] The policy took effect in 2015, and the limit for the financial year 2015–2016 was set at £119.5 billion,[2] amounting to 56% of total welfare spending.[1]
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 Welfare spending was initially required to be less than the cap every year, but since 2017 this has been replaced by a medium-term welfare cap and welfare spending is assessed for a single year chosen by HM Treasury. Following the 2017 general election the OBR made its Autumn 2017 assessment for the financial year 2021–22. The 2019 general election led to a subsequent assessment at the March 2020 budget for the financial year 2024–25[3] with the cap set at £135.4 billion for that year.[4]
In January 2022 the House of Commons approved a change to the welfare cap allowing it to qualify as one of the "fiscally neutral classification changes" which do not require approval from Parliament.[4]
The policy was a facet of the Coalition government's wide-reaching welfare reform agenda which included the introduction of Universal Credit and reforms of housing benefit and disability benefits.
^ abThe welfare cap (Report). House of Commons Library briefing paper. 2 March 2017.
^Cite error: The named reference newstatesman3 was invoked but never defined (see the help page).
^Keep, Matthew (16 June 2020). "The welfare cap". House of Commons Library.
^ ab"Research Briefing: The welfare cap". House of Commons Library. UK Parliament. 24 March 2023.
The welfarecap is a self-imposed limit on the amount that the government of the United Kingdom can spend on certain social security benefits and tax...
The benefit cap is a UK welfare policy that limits the amount in state benefits that an individual household can claim per year. It was introduced by...
modified to include a new cap on welfare expenditure alongside the Government's fiscal mandate. The March 2014 welfarecap puts a limit on the amount...
introduction of Universal Credit, the introduction of a welfarecap to limit the total size of the welfare bill, reform of the Council Tax and the introduction...
Finland, Iceland, Norway, and Sweden). This includes a comprehensive welfare state and multi-level collective bargaining based on the economic foundations...
A "welfare queen" is a derogatory term used in the United States to describe individuals who are perceived to misuse or abuse the welfare system, often...
In professional sports, a salary cap (or wage cap) is an agreement or rule that places a limit on the amount of money that a team can spend on players'...
Welfare dependency is the state in which a person or household is reliant on government welfare benefits for their income for a prolonged period of time...
The Welfare Reform Act 2012 is an Act of Parliament in the United Kingdom which makes changes to the rules concerning a number of benefits offered within...
The welfare state of the United Kingdom began to evolve in the 1900s and early 1910s, and comprises expenditures by the government of the United Kingdom...
The History of the welfare state in the United Kingdom covers the growth of welfare programs and programs for the poor since the 13th century, with emphasis...
The family cap denies mothers and families who receive welfare assistance further financial assistance after the birth of another child. It applies to...
Social welfare in Sweden is made up of several organizations and systems dealing with welfare. It is mostly funded by taxes, and executed by the public...
emission trading (also called carbon market, emission trading scheme (ETS) or cap and trade) is a type of emissions trading scheme designed for carbon dioxide...
The Welfare Reform and Work Act 2016 (c. 7) is an Act of the Parliament of the United Kingdom. It was introduced into the House of Commons on 9 July 2015...
Health, Education, and Welfare (1973–1975). While serving in the Office of Management and Budget, Weinberger earned the nickname "Cap the Knife" for his cost-cutting...
Health (Animals and Birds) Ordinance, Cap. 167 Dogs and Cats Ordinance and Cap. 421 Rabies Ordinance. Animal welfare and rights in China Animal rights by...
Commonwealth Federation (CCF) in Saskatchewan introduced many elements of a welfare state (as pioneered by Tommy Douglas) in the 1940s and 1950s. On the advice...
Cultural Relations (ICCR). She has been actively associated with several welfare activities such as Aseema, an NGO engaged in the rehabilitation of street...
welfare regulations. The process of removing all hidden legislative barriers to trade is still incomplete. Since 2000, the "second pillar" of the CAP...
2024 (2024-01-04) Tulsa police discover a woman fatally beaten during a welfare check, while a son witnesses his father's murder while renovating a house...
practice medicine. In October 2014, the Ministry of Health and Family Welfarecapped admission and tuition fees at private medical colleges at 1,990,000...
January to December. In October 2014, the Ministry of Health and Family Welfarecapped admission and tuition fees at private medical colleges at 1,990,000...
interventions for self-employment (including the New Enterprise Allowance and future offer and the Minimum Income Floor) benefit cap Health and Safety Executive...