The Treasury's decision to scrap cuts to tax credits means that families will be affected when the planned changeover to universal credits happens, a think tank has warned.
Cross-party think tank Demos "welcomed" the announcement to scrap the unpopular cuts to tax credits but said large portions of the promised savings to the welfare budget now depend on future universal credit figures.
In a statement, Demos said:
The Chancellor’s welcome decision to shelve plans to cut tax credits will protect working families now, at the expense of the Treasury; but over time, the plan is to move from tax credits (and other benefits) to Universal Credit – entitlements we know, from the Summer Budget, will be subject to cuts.
So it is when families make the transition from one system to another that the real savings will be made.
The Chief Executive of The Children’s Society has said that the Chancellor has taken the "right decision" in abandoning his plans to cut tax credits for working families.
Children would have been the biggest losers had these deeply unfair cuts gone ahead and we welcome this reversal.
[But] the Government is planning, through its Welfare Reform and Work Bill, to prevent parents from getting tax credit support for more than two children.
It is also freezing working-age benefits for the next four years, and increasing the number of families hit by the benefit cap.
The boss of UK care home company HC-One has told ITV News that social care "remains in crisis", saying he was "very very disappointed" in George Osborne's spending review.
Even with up to £2bn announced for the sector, Glen Mason said the sector would still face a huge gap just in meeting the basic cost of care.
While a plan to increase council tax was a "partial solution", he added, it remained to be seen whether local authorities would pass on those savings to the care sector.
He warned that several care home providers may now start looking at their books and could even shut homes down, as the review did not provide a "real solution".
The chief executive of the Federation of Master Builders has said that George Osborne needs a "new generation of 'real' builders to make his vision for housing a reality".
We're already seeing housing developments starting to stall because the cost of hiring skilled tradespeople is threatening to make some sites simply unviable.
Unless we see a massive uplift in apprenticeship training in our industry, there won't be enough pairs of hands to deliver more housing on this scale.
The National Police Chiefs' Council, which represents the UK's chief police officers, says it is 'delighted' following the Chancellor's announcement ruling out any cuts in police budgets in England and Wales.
Britons will feel "betrayed" as George Osborne failed on promises made five years ago, shadow chancellor John McDonnell said in response to the chancellor's Autumn Statement and Spending Review in the Commons.
"We were promised that by today the deficit would be eliminated and debts would be under control and falling dramatically. "People put their trust in that commitment." He added: "After five years the deficit has not been eliminated and this year it's predicted to be over £70 billion. "Instead of taking five years, it's going to take 10."
ITV News' team of specialist editors give their verdict to the spending review announced by Chancellor George Osborne.Read the full story ›
Sources at the Department for Work and Pensions have told ITV News that despite George Osborne's U-turn on his controversial tax credit plan, there will be no "compensating hit" elsewhere in its budget.
The Chancellor is instead simply "forgoing the savings", they added.
DWP source says re tax credits "there's no compensating hit elsewhere. Chancellor's just forgoing the savings"
The Chancellor has announced that controversial plans to cut tax credits are to be scrapped altogether.
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