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The two cabinet ministers also challenged Labour to back their plans.
His aides admitted the move would be controversial and challenged Labour to say whether it would back it or raise taxes or borrowing instead.
With an eye on the 2015 general election, Mr Osborne challenged Labour, which he dubbed "the welfare party," to say whether it would reduce pensions.
David Cameron has challenged Labour to say whether its MEPs will back the EU budget cut agreed by EU leaders on Friday.
The proposals were drafted by officials last spring after the chancellor, George Osborne, challenged Labour to back a parliamentary bill capping the welfare spend every year for four years.
Seeking to draw a line under his party's spell in coalition, Mr Farron also challenged Labour to overcome its "confusion" and join the Lib Dems' depleted ranks in voting against the Welfare Reform and Work Bill.
Similar(43)
And she challenges Labour to say that it would repeal the bill.
That was before Ukip and the Greens started challenging Labour's monopoly on opposition.
He challenges Labour to support the new curriculum and the English baccalaureate.
The Tories will challenge Labour to say whether it would accept these rules.
He challenges Labour to support his reforms, and to trust outstanding heads.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com