A regional benefits cap , taxes on disability benefits and a limit on child benefit to the first two children could be introduced in a new welfare squeeze after the general election . Leaked Whitehall documents show officials have drawn up a series of options that could be used to further reduce the benefits bill . All the main parties are committed to money-saving welfare reform , but the Conservatives have pledged to make the deepest cuts , taking £12billion out of welfare in the next Parliament . A regional benefits cap , taxes on disability benefits and a limit on child benefit to the first two children could be introduced in a new welfare squeeze . A two-year freeze on some benefits and a lowering of the new benefits cap – the maximum amount in benefits a household can receive – from £26,000 to £23,000 are already on the agenda . The Institute for Fiscal Studies suggests those measures would save £2billion a year by 2017-18 . But documents leaked to the BBC also suggested a regional benefits cap , an idea backed by Labour , as one possibility . The £23,000 limit would vary across the country , with the highest sum paid in London , where housing costs are greatest . It is said that limiting child benefit to the first two children for future claimants would save £1billion a year . Work and Pensions Secretary Iain Duncan Smith said the proposals were not Tory party policy . The documents also proposed taxing disability benefits – a move that would prove highly controversial . This would mean better-off claimants losing some of their payments , and would save £1.5billion a year . Carer ’ s allowance could be restricted to the most needy , saving £1billion . And the contributory element of employment and support allowance and jobseekers ’ allowance would be reined in . Currently claimants who have paid enough National Insurance contributions can get the benefits with little means-testing . Some 30 per cent of claimants , over 300,000 families , would lose about £80 per week , saving taxpayers £1.3billion . Council tax support , meanwhile , could be incorporated into the new universal credit , which is gradually replacing all the main out-of-work benefits and tax credits . And replacing the industrial injuries compensation scheme with an insurance policy for employees would save £1billion . The Tories insisted that the proposals were not party policy and had been prepared by officials considering all options for the next government , of whatever make-up . ‘ It ’ s wrong to suggest that any of this is part of our plan , ’ said a spokesman for Work and Pensions Secretary Iain Duncan Smith . Labour Work and Pensions spokesman Rachel Reeves , said : ‘ These plans were drawn up for Conservative ministers to deliver their extreme cuts plan . The Tories now need to come clean about what cuts they plan to make . ’
Leaked Whitehall documents show plans to further reduce the benefits bill . Regional benefits cap and taxes on disability benefits could be introduced . All the main parties are committed to money-saving welfare reform . Comment: