The Chancellor of the Exchequer today announced that, as mentioned in the Conservative party manifesto, the benefits cap will be reduced.
Speaking on the Andrew Marr show, George Osborne said: "I think more broadly you do have to look at the benefits system and the welfare system and make sure that it's fair for working people."
He added: "It's not fair for example that people out of work can earn more than people in work."
The benefit cap will be reduced to £23,000 in London and it will be even lower in the rest of the country.
The Chancellor announced that the government are going to make sure that those on high incomes living in subsidised council housing will be made to pay something closer to the market rent.
Osborne also promised that the details of the benefit cap, including what the rate will be outside of London, will be laid out in the budget on Wednesday.
He went on to claim that "substantial steps forward" had already been made in the previous coalition government.
According to the Guardian, Osborne has confirmed that Wednesday's budget will also see a "£650m raid on the BBC's licence fee".
It is also thought that the Chancellor may also announce on Wednesday that that BBC will have to "meet the cost of free TV licences for over-75s", the BBC reports.
This will be Osborne's first budget in an all-Tory government after the end of the coalition in May this year.
Speaking to Andrew Marr, Osborne said: "We've got to have a welfare system that is fair to those who need it but also fair to those who pay for it."
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