Disability benefits U-turn 'will add £1.3bn a year to welfare budget'

OBR says Treasury will breach welfare cap by 20bn over duration of current parliament after cuts reversal

The Treasury will breach its self-imposed welfare cap by 20bn over the duration of the current parliament following the U-turn on disability benefits, the government's spending watchdog has confirmed.

The Office for Budget Responsibility (OBR) said the reversal of a cut in personal independence payments (PIPs)would add another 1.3bn a year to a welfare budget that was already 2.7bn over a limit set by George Osborne before the general election last May.