The Government’s welfare cap is on track to deliver £21bn savings through changes to benefit payments and reforms to eligibility, the chancellor confirmed today.

In his Budget speech, chancellor George Osborne said the Government had legislated for £21bn welfare savings by pegging the limit on total spending on benefits – with the exception of pensions and automatic stabilisers which kick in during times of economic downturn.

He also confirmed that welfare reductions would make up £12bn of the £30bn fiscal tightening measures needed by 2017/18 – with £13bn government department reductions and a £5bn tax avoidance clampdown making up the remainder.