Osborne 'isolated' after peers block welfare cuts

By Elizabeth Piper and William James LONDON (Reuters) - A defeat for proposed welfare cuts in Britain's upper house of parliament was widely seen on Tuesday as a deep blow to Chancellor George Osborne, leaving him "isolated" and "humiliated" after he asked the country to live within its means.     Forced to backtrack on cuts to benefits for low-earning families, Osborne's determination to push through measures critics said would hurt Britain's most vulnerable people was deemed ill