Criteria for backdating income support
This Budget sets out around £17 billion of measures that will reduce the deficit, including £12 billion by 2019-20 from welfare reform and £5 billion by 2019-20 from tackling tax avoidance and tax planning, evasion and compliance, and imbalances in the tax system.In the autumn, the government will set out plans to deliver the remaining £20 billion of consolidation measures required to achieve the surplus following a rigorous Spending Review process. Underpinning the government’s approach is a commitment to reward work and support aspiration.Over the past year, 85% of the increase in employment has been in full-time work and 92% has been in high or medium-skilled jobs.The proportion of those who are inactive has been falling and is lower than it was before the crisis, but there are still too many working-age people who are not engaged in the labour force.It sets out bold reforms on tax and welfare, and introduces a National Living Wage so we move Britain from a low wage, high tax, high welfare economy to a higher wage, lower tax, lower welfare economy.It delivers on the promises on which the government was elected.
This Budget continues the work of repairing the public finances, addressing the long-standing weakness in productivity and rebalancing the economy.Earnings growth is continuing to strengthen, with earnings up 2.7% over the year in the 3 months to April 2015.Living standards are forecast to be higher in 2015 than they were in 2010, and are expected to continue to grow over the forecast period.Since 2010, the government has pursued a long-term economic plan that has halved the deficit as a share of economy in 2014, employment has reached record levels, and wages are rising above inflation. At 4.9%, the deficit remains too high, and productivity remains too low.The economy is still too unbalanced, and more needs to be done to build up the nations and regions of the UK, and to close the productivity gap between the north and south.