Healey promises welfare bill cuts before next election

Summarised from 5 outlets · Updated 29 Oct, 08:27 · Archive

Chancellor John Healey has promised a reduction in the welfare bill before the next general election, despite his Budget containing no immediate action on the issue.

Chancellor John Healey has promised there will be a reduction in the welfare bill before the next general election, despite his first Budget containing no immediate action on welfare reform. He told broadcasters on Thursday that the government was 'ready to take some pretty tough decisions' to rein in spending, but ruled out what he called 'crude cuts'.

Healey told the BBC's Today programme: 'There will be a reduction in the benefits bill. We'll do that in a Labour way and we will do that because it is simply not good for Britain or progressive to have a bigger and bigger benefits bill.' He said the welfare system was 'unsustainable' and described himself as having a 'moral duty' to help young people who had been 'written off' by previous governments.

The Office for Budget Responsibility forecasts welfare spending will rise this year by £19bn to £353bn and is expected to reach £431bn by 2031/32, driven primarily by health-related and pensioner benefit spending. Health and disability benefits alone are forecast to cost over £100bn annually by the end of the decade, rising from £85.6bn in 2025/26. The OBR also noted that disability benefits and Universal Credit are set to rise by £20bn and more than £14bn respectively between 2025 and 2030.

The opposition Conservative Party, led by Kemi Badenoch, accused Labour of being 'addicted to welfare' for not addressing the issue in the Budget. Reform UK said the Budget did not address the 'ballooning' benefits bill. The Independent noted that the Institute for Fiscal Studies think tank warned the Budget delayed tough decisions.

Healey said the government had already begun implementing measures, including reinstating face-to-face assessments and changing Universal Credit terms so people no longer have to describe themselves as 'too sick to work'. The Independent reports he told GB News: 'Those are changes we're making now. But in the long run, we have to bring the cost of benefits down.'

Two major reviews will determine the government's approach. Sir Stephen Timms is leading a review of disability benefits, while former health secretary Alan Milburn is leading a review of youth unemployment. Both are expected to be published in November. Healey told MPs the government would respond by the end of the year and publish a policy document setting out proposals, with legislation to follow next year.

How it is being reported

• Healey insists he will bring welfare bill down despite delaying decisionsThe Office for Budget Responsibility (OBR) predicted that the total cost of health-related benefits will exceed £100bn by the end of the decade, with three quarters of the payments forecast to be paid to working-age adultsThe Independent · 29 Oct, 08:10
• Chancellor claims Labour WILL bring down benefits bill amid outcry at failure to act in Budget... but won't say how and admits it might not happen for yearsJohn Healey faced a backlash over the absence of any action on benefits in his Budget yesterday, with Kemi Badenoch accusing Labour of being 'addicted' to welfare.Daily Mail · 29 Oct, 07:59
• Healey vows to cut welfare bill before next election with ‘tough’ approach to young peopleChancellor’s comments come as fiscal watchdog says disability benefits will cost £100bn a year before end of decade Business live – latest updates John Healey had said there will be a reduction in the welfare bill before the next election, with a “tough” approach to young people who do not accept support to get a job or training. The chancellor was repeatedly pressed on the issue in broadcast interviews after documents from the Office for Budget Responsibility suggested sickness and disability benefits would cost £100bn a year before the end of the decade. Continue reading...The Guardian · 29 Oct, 07:54
• Healey promises ‘reduction’ in welfare spending before electionJohn Healey has promised there will be a “reduction” in the welfare bill before the next election despite the Budget not addressing huge payments on benefits and pensions. Healey told broadcasters on Thursday morning that the government was “ready to take some pretty tough decisions” to rein in spending although he echoed his predecessors in [...]City AM · 29 Oct, 07:49
• Healey promises reduction in welfare bill before next electionThe Conservatives criticised the chancellor for not providing more details on welfare reform in his Budget.BBC News · 29 Oct, 05:57

In this story: John Healey · Kemi Badenoch · Sir Stephen Timms · Alan Milburn · Office for Budget Responsibility · Labour · Conservative Party · Reform UK

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