The Chancellor - George Osborne
George Osborne's plans to slash welfare bill by £2.5bn for people who are disabled or too ill to work
Osborne told Duncan Smith: "Given the pressure on overall public spending in the coming period, we will need to continue developing further options to reform the benefits as part of the spending review process in order to deliver further savings, greater simplicity and stronger work incentives.
"Reform to the employment support allowance is a particular priority and I am pleased that you, the prime minister and I have agreed to press ahead with reforms to the ESA as part of the spending review that will deliver net savings of at least £2.5bn by 2014-15."
IDS - Get on your bus!
AN UNREPENTANT Iain Duncan Smith insisted on a trip to Wales yesterday that he had no regrets about advising unemployed people in Merthyr Tydfil to get on the bus to find jobs in Cardiff.
Last month the Work and Pensions Secretary caused a furore by making the comment after watching a Sky TV documentary about the town, which has one of the highest unemployment rates in the UK.
Mr Duncan Smith arrived in South Wales in a ministerial black Jaguar for a series of visits, including one to the Victory Outreach rehabilitation centre for ex-offenders with drug problems.
Mike Russell - Education deal with COSLA
Education secretary Mike Russell said an agreement with local authority body, Cosla, under the budget earlier this week, would protect jobs.
However, the EIS union warned the deal struck between the Scottish Government and Cosla would "damage" the quality of education across Scotland and create "serious difficulties" for schools, teachers, and pupils.
Ronnie Smith, EIS general secretary said: "The budget-cutting agenda will lead to a cull of teachers on short-term contracts in order to create the impression that more new teachers will gain jobs next year.
"But recently qualified teachers, many working on supply or fixed term contracts, will be cast aside and left on the scrap heap.
