Mr Osborne suggests any disagreements have been ironed out
Chancellor George Osborne has confirmed there will be a major overhaul of the benefits system with a new universal credit introduced.
Mr Osborne told the Daily Telegraph “substantial savings” were to be made.
Details of the replacement for existing benefits are likely to come out as the Conservatives meet for their annual conference in Birmingham on Sunday.
Welfare reform is key to plans to cut the deficit but has been the source of reported tension between ministers.
Mr Osborne has already signalled he wants billions of pounds-worth of welfare cuts as part of the government’s imminent spending review – on top of £11bn outlined in June’s Budget.
As part of this shake-up, it is understood the Work and Pensions Secretary Iain Duncan Smith has won his fight within government to replace the current system of Jobseekers Allowance, income support and employment support allowance with a single universal benefit in an effort to simplify the system.
Friends of Mr Duncan Smith believe he has won “broad agreement” that work should pay more than benefit, and that he will be allowed to keep an element of expected savings in the welfare budget to ensure people are not worse off when they move off benefits.
The issue is likely to be a major focus of debate during the conference.
‘No conflict’
In the interview with the Daily Telegraph, Mr Osborne dismissed reports there had been a conflict with Mr Duncan Smith over reform.
He suggested there was disagreement over the summer but said the negotiations were now set to produce “substantial welfare savings”.
He told the paper: “We’ve had some good robust discussion. But people will be impressed by the package we have jointly agreed and robust discussions have come to a good robust conclusion,” he said.
On Friday, government sources said they were “making progress” on Mr Duncan-Smith’s proposals, but media reports that £9bn could be saved in a shake-up were described at the time as “premature”.
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