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The Spending Review - The Facts

Wednesday June 26 2013


The Spending Review The Spending Review


CHANCELLOR George Osborne has announced a whole host of changes in his Spending Review for 2015/16. Here are the key points.

Welfare

Jobseekers face new requirements to get benefits. Non-English speaking claimants must learn the language while New Upfront Work Search system will require claimants to provide a CV, register for online job search and start looking for work before getting benefits.

Lone parents of three and four-year-olds to be required to attend job centres regularly and prepare for work.

Payment of winter fuel payments for people living abroad to be linked to a 'temperature test' from Autumn 2015 to ensure pensioners in hot countries do not get it.

Three new welfare reforms to include 'Welfare Cap' set in Budget statement annually from April 2015 for four years though state pension not included.

NHS

NHS budget rises to £110bn for 2015/16 - £4.7bn capital spending in NHS.

Education

Education budget increased to £53bn for spend on schools only. Pupil Premium extended to more children, with 180 more free schools funded.

Tax

HMRC resource budget cut by 5 per cent but extra resources provided to tackle tax evasion raising a predicted £1bn-plus.

Transport

Transport to make 9 per cent saving in day-to-day spending but it will receive the largest boost of any department to its capital budget, which rises to £9.5bn - to be repeated every year to 2020.

Investment

A massive £50bn of capital investment in 2015/16, amounting to more than £300bn for infrastructure including broadband, science and schools by 2020. Promises the largest programme of investment in roads for 50 years and in railways since the Victorian age.

Law

Savings of 10 per cent in Justice department. Police counter-terrorism budget will not be cut while there will be an Increase of 3.4 per cent in intelligence services budget.

Defence

No reduction in numbers of soldiers, sailors or airmen, but cuts in civilian workforce. Defence resource budget maintained at £24bn. Its equipment budget will be £14bn and will grow by 1 per cent in real terms in following years.

Jobs and Pay

Government workers to fall by extra 144,000 by 2015/16. Ending automatic progression pay in public sector - though Armed Forces excluded. Pay rises limited to average of up to 1 per cent.

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Reply Posted by bum@hotmail.com on Wednesday June 26 2013 at 13:49
Not too bad actually.

Reply Posted by King Fred on Wednesday June 26 2013 at 15:19
A big thumbs up from me. Well done Mr Osborne.

Reply Posted by Jo on Wednesday June 26 2013 at 15:33
The pay rise limit will obviously not be applied to MP's then - what increase are they looking to achieve.

Reply Posted by Gaynor on Wednesday June 26 2013 at 17:06
In the absence of pay rises and increased pension contributions public sector workers have had to rely on pay progression to make ends meet. The only public servants getting gold plated pensions are the top civil servants and MPs. There are too many chiefs and not enough Indians. Public Services are suffering and will continue to do so. There'll be less permanent public sector workers but what this government doesn't tell you is that they replace them with contact staff who cost a damn sight more but apparently that comes from a different budget. Smoke and mirrors!

Reply Posted by Grim on Thursday June 27 2013 at 19:06
Aww diddums, public sector workers have had it far too goo for far too long.
I think you will find that contract staff are actually cheaper to the government in the long run.

Reply Posted by Grim on Thursday June 27 2013 at 19:06
Aww diddums, public sector workers have had it far too goo for far too long.
I think you will find that contract staff are actually cheaper to the government in the long run.

Reply Posted by Fred on Wednesday June 26 2013 at 18:31
Arrrrrrrrrr, job seekers will need to sign on weekly now - looks like that's an extra day they will have to get out of bed every fortnight.

Should be that those who refuse to find, or can not provide evidence of them looking for work to have their benefits stopped.
Also agree that the non English speaking should not get any benefits - but who is going to pay for them to learn English ? --- They should be deported.

Reply Posted by Grim on Thursday June 27 2013 at 18:49
I agree Fred, they shouldn't get benefits anyway.
Weve all heard of immigrants coming in off the boat and demanding council houses and benefits haven't we.
Deport the lot of them!
Theres going to be hundreds of thousands of Romanians and Bulgarians coming over next year nicking all our jobs and decimating our already stretched public services.

Reply Posted by Terry on Wednesday June 26 2013 at 18:37

What an excellent idea making the job seekers sign on weekly now

No more going on holiday pretending you are still at home seeking work - If you can afford to go away then you can afford to lose that weeks benefit

Reply Posted by Grim on Thursday June 27 2013 at 18:45
They should make em sign on every other day and take their passports away from em too as far as I am concerned.
How many time do we here of doleys going to caravan in skeggy for a fortnight?

Reply Posted by x on Wednesday June 26 2013 at 18:57
am i hearing this right, public sector workers will no longer be eligable for an automatic pay increase each year and that thousends of civil servents are to lose their jobs,well you know what, if it is right dont say you wern't warned.theres nothing left to take off people on benefits so it looks like your next, people should have stood together against this government instead of ripping into each other.they will eventually start to take from your purse and there wont be a damn thing anyone can do about it

Reply Posted by Grim on Thursday June 27 2013 at 19:04
And just WHY should they get a pay increase each year?
Everyone else is suffering too, they've had it far too good for far too long.

Reply Posted by Gaynor on Wednesday June 26 2013 at 21:07
You pay your taxes, you expect a public service. Well, there's hardly anyone left in government departments doing the work and there's going to be less. The unemployed are going to have to sign on every week and non English speaking claimants will have to learn the language. It doesn't take a genius to work out that in the absence of public servants these services will be fulfilled by private firms. Look at what's happening with Royal Mail. I guess private enterprise will flourish and benefit from this and the public sector will be crippled even further. Now what are really paying your taxes for???!

Reply Posted by lyndon on Thursday June 27 2013 at 22:36
Aw diddums no ones biting to your tedious nonsense

Reply Posted by x on Friday June 28 2013 at 13:41
read the statement again grim i didn't say they should get a pay rise every year,i said why are they acting shocked at the announcement,they were warned often enough that it wasn't just benefit claiments this government were out to crucify.unless your earning thousends of pounds a month your turn will come,this government as nothing to gain by looking after poor peoples interests

Reply Posted by Grim on Friday June 28 2013 at 16:07
I know exactly what automatic pay progression means, it means they get a higher grade of pay every year regardless of if they can actually do the job or not.
Rightly so too, they have had it far too good for far too long, i'd pay them on results and if they failed to meet the grade then they would get a pay cut.
Pity we can do the same to our MP'S

Reply Posted by Becky on Saturday June 29 2013 at 17:41
Can only comment for NHS staff, but you don't automatically get your increments every year. There are gateways and development reviews that you need to complete. These are done collaboratively with your line manager who needs proof that the objectives have been set. They can and do stop the pay progression if they feel that staff are not developing in their role. This is not an argument for or against the government cuts, only information for people to make an informed judgement on the cut backs.

Reply Posted by top seo guys on Friday October 25 2013 at 05:45
DlNPPU A big thank you for your blog.Thanks Again. Awesome.