Budget cuts will mean 'radical changes' to the welfare system

Cutting £12bn from welfare spending will require "radical changes" to much of the benefits system, according to the Institute for Fiscal Studies (IFS).

Paul Johnston, from the IFS, admitted savings of £12bn were possible but required significant cuts to the "big benefits", such as housing, child benefit and disability benefits.

He also said the government was increasing the divide in the "treatment of the generations" but said there were economic and social reasons for doing that, as well as political ones.