British government's welfare reforms blocked by peers

By William James LONDON (Reuters) - British Chancellor George Osborne's flagship welfare reforms were blocked by parliament's unelected upper chamber on Monday, dealing a blow to the Conservative government and setting the stage for a bitter constitutional conflict. The reforms were a key component of Osborne's plan to wipe out Britain's budget deficit by 2020, and the defeat will likely force an embarrassing re-think - potentially damaging his credentials as a successor to Prime Minister David