Incapacity benefits in chancellor George Osborne’s firing line

George Osborne has confirmed that incapacity benefits will be up for review, saying only those with a “genuine need” should receive payouts.

The chancellor said employment support allowance and housing benefit would come under scrutiny over the summer, with some 2.5 million people estimated to be on employment support allowance, costing about £12.5 billion a year.

Speaking from the G20 conference in Toronto, Mr Osborne said his spending review was necessary to cut the UK’s huge budget deficit, describing it as a choice which “cannot be ducked”.

He added: “We have got to make sure it protects those in genuine need, protects those with disabilities and protects those who can’t work but also encourages those who can work into work.”

However, his comments were criticised by shadow work and pensions secretary Yvette Cooper, who told to the BBC that the chancellor is simply cutting benefits, expressing scepticism that the moves will help to return people to work.