Article VQVM Spending review 2015: things you may have missed in Osborne's small print

Spending review 2015: things you may have missed in Osborne's small print

by
Andrew Sparrow and Graeme Wearden
from on (#VQVM)

The tax credit cuts that will still go ahead, the bad news for students, and other devils in George Osborne's detail

Related: Tory MPs cheer George Osborne's climbdown on tax credit cuts

We have added our own forecast judgment of a further six-month delay to the managed migration phase of the [universal credit, or UC] rollout. As usual, we have considered evidence from DWP and the latest assessment of UC rollout by the Major Projects Authority. While this indicates greater confidence in the 'transition phase' rollout plan, considerable uncertainty remains over the 'managed migration' phase. And of course the transition phase rollout schedule has just been pushed back six months, just a year after the previous delay.

Related: Student loans: Osborne criticised for freezing repayment threshold

To reduce government debt, the student loan repayment threshold for plan two borrowers will be frozen until April 2021.

Related: Osborne accused of 'despicable' attempt to cut opposition party funding

Therefore, subject to confirmation by parliament, the government proposes to reduce Short money allocations by 19%, in line with the average savings made from unprotected Whitehall departments over this spending review. Allocations will then be frozen in cash terms for the rest of the parliament, removing the automatic RPI indexation. Policy development grant allocations will also be reduced by a similar proportion, ensuring that political parties in receipt of taxpayer funding contribute to the savings being asked of local and central government.

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