Chancellor to outline plans for capping welfare rises

The Chancellor is expected to lay out his plans for curbing parts of public expenditure that are normally considered outside his control - the so-called Annual Managed Expenditure.

The Chancellor may target housing benefits as part of his plans to curb welfare rises Credit: Tim Ireland/PA

These include welfare, debt interest payments, tax credits and public sector pensions, which fluctuate over time and account for roughly half of all government spending.

The Times (£) reports that the Chancellor will target housing and incapacity and sickness benefits.