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The cuts, triggered by over-the-top spending by one agency that prompted a public outcry, also come with a $500,000 cap on the cost of any government-sponsored meeting and closer scrutiny of all travel.
Ministers would instead focus on a cap on the cost of residential care after two years in care.
The watchdog has also been charged with introducing a cap on the cost of credit, and the commission's research will inform its work.
Osborne said he would be imposing a legal duty on the Financial Conduct Authority to impose an overall cap on the cost of credit.
Ahead of the summit, some critics of the sector had called on the government to introduce a cap on the cost of loans.
More competition and transparency in the payday loan market will ensure that the FCA's cap on the cost of credit remains precisely that– a cap, not the norm.
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A cap on the cost-of-living adjustment, for example, would be a nightmare for pensioners were inflation to flare up, because they would have no way of making up the loss in their purchasing power.But after years of neglecting the problem, such changes will be hard to avoid.
Jeremy Hunt will announce on Monday that the government will introduce a £75,000 cap on the costs of social care – excluding the costs of accommodation and food – in April 2017.
Mr Davie said there would be no cap on the costs of the investigation and individuals would be allowed legal costs of up to £50,000.
The announcement of a £75,000 cap on the costs paid for long-term care brings some certainty to the ongoing debate, and will enable people to start planning.
"You can't be confident about the implementation of a cap on the costs that people have to pay unless you are also clear about how you meet the costs," he said.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com