A bill that would cut welfare payments to low-income families and provide support to those on low incomes could save billions on welfare costs, according to the independent think tank Demos.
A report by the think tank found that cutting welfare payments for the most vulnerable people could cut the welfare bill by more than £1 billion.
If the bill were to pass the House of Commons, it could mean up to £500 per household would lose out on payments to help them survive.
But if the Government is unable to reach agreement with the Opposition, it will face the prospect of having to seek further changes in the Budget, which will have to be approved by Parliament’s Joint Committee on the Welfare of the Nation (JCWN).
It is believed the Government will seek a £50 per week increase in welfare payments.
The Budget estimates welfare payments will be around £2.7 billion in 2021-22, which could be a £500 million hit to low income families.
However, the Government says that the welfare cuts are necessary to ensure that welfare is being spent as effectively as possible.
The report by Demos found that, under current laws, welfare payments would increase to £1,150 per week, but if the bill is passed, the number could be cut to £750.
The Government said the welfare reforms will save £2 billion over the coming decade.
A spokesman for the Department of Work and Pensions said: “This Budget will save families, businesses and society billions of pounds over the next decade.
The Welfare Reforms are a key part of our plans to transform the welfare system and make sure that welfare payments are available to all in the most effective way possible.”
These reforms will deliver real results for millions of families, including saving millions of pounds a year in the welfare budget, while also supporting the millions of people who have fallen through the cracks and are not receiving their entitlements.