Britain will cut spending on welfare by £12 billion ($18.5 billion, 17 billion euros) in a fresh austerity drive, finance minister George Osborne announced Wednesday as he delivered the government's post-election budget.

Chancellor of the Exchequer Osborne told parliament that the Conservative government had found "savings of £12 billion from welfare" as part of wider cuts totalling £37 billion that will come in part from clawing back tax evasion and by reducing departmental budgets over the next five years.