The welfare cap is a self-imposed limit on the amount that the government of the United Kingdom can spend on certain social security benefits and tax credits.
[1] The policy took effect in 2015, and the limit for the financial year 2015–2016 was set at £119.5 billion,[2] amounting to 56% of total welfare spending.
The Office for Budget Responsibility (OBR) is required to report periodically on whether the cap has been met or exceeded.
In June 2014, leaked internal documents suggested that the Coalition government could breach its own welfare spending cap.
The OBR judged that the welfare cap was being breached in its 2015 and 2016 assessments, requiring a Government minister to justify the excess spending to the House of Commons on both occasions.