UK spending on welfare is to be capped at £119.5bn for 2015-2016, Chancellor George Osborne has announced.
Osborne confirmed the cap on benefit spend would rise in line with forecast inflation to £127bn in 2018-19.
The cap is expected to affect disability benefits and Employment Support Allowance.
Only the State Pension and the cyclical unemployment benefits are excluded.
Osborne said: "Britain should always be proud of having a welfare system that helps those most in need.
"But never again should we allow its costs to spiral out of control and its incentives to become so distorted that it pays not to work."
He continued: "In future, any government that wants to spend more on benefits will: have to be honest with the public about the costs, need the approval of Parliament, and will be held to account by this permanent cap on welfare."
