Britainupdated 1h ago3 min read
John Healey Says UK Will Lower Welfare Benefits Spending Before Next Election
“several Treasury sources took issue with this being interpreted as a promise to do so by the next election”
“The finance minister did not make a clear commitment on whether welfare spending would fall before the next election, due no later than mid-2029.”
This article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
Healey: welfare bill will be reduced before the next general election. Treasury disputes commitment to a pre-election welfare cut.
Save coverage image
Healey seeks welfare reduction
British finance minister John Healey said the government would lower its spending on welfare benefits as he tried to address “one of the big public spending challenges” after his first budget announcement.
“We have to bring the benefits bill down. You don't do that by crude cuts.”
Healey told the BBC that “We have to bring the benefits bill down. You don't do that by crude cuts,” while he did not make a clear commitment on whether welfare spending would fall before the next election due no later than mid-2029.
Healey said the government had to prevent welfare spending from getting “ever bigger” and he focused on unemployment among young people, calling the system “unsustainable.”
Healey said the government had a “moral duty to deal with these youngsters” who have been “written off by previous governments,” and he pointed to a government review into young people not in employment, education or vocational training due to be published next month.
Healey also said a review into the disability benefits system was being finalised, as the opposition Conservative Party and some bond investors homed in on rising spending on social benefits.
Treasury disputes election promise
The Treasury disputed that Chancellor John Healey suggested to the BBC that the benefits bill will be cut before the next general election, after Healey told the Today Programme on Radio 4, “There will be, there will be a reduction in the benefits bill, we'll do that in a Labour way.” Treasury sources took issue with interpreting that as a promise to cut by the next election, with one suggesting Healey was “explicitly attempting to avoid that impression being left.” Healey told Today, “I have said clearly and the prime minister has said as well, we have to bring the benefits bill down,” and he said the government was “been reducing the rate of increase in the welfare bill”.
The government said two “big reports” next month would help it “map out the way that we need to change the system for the long run,” and it said a review of disability benefits co-chaired by Labour minister Sir Stephen Timms and a review on Neet led by former minister Alan Milburn would be published in November. The Conservatives accused Labour of being “addicted to welfare,” while Reform UK said the Budget did not address the “ballooning” benefits bill, as the Office for Budget Responsibility forecast welfare spending rising to £353bn this year.
Reviews and spending forecasts
John Healey promised there will be a “reduction” in the welfare bill before the next election, and he told broadcasters that the government was “ready to take some pretty tough decisions” to rein in spending. Healey said the government would cut spending on benefits by giving people a chance to work, and he argued it was “not progressive” to see total welfare spending rise from £334bn last year to £413bn in 2030. The Office for Budget Responsibility warned that the Chancellor could be tasked with finding £11bn across government departments to keep spending commitments on defence and other “protected” areas including welfare on track.
“Welfare spending is forecast to rise this year by £19bn to £353bn.”
The BBC said the government review into young people not in employment, education or vocational training was due to be published in November, while the government expected to respond by the end of the year and publish a policy document setting out proposals and legislation next year. The BBC also reported welfare spending is forecast to rise this year by £19bn to £353bn, and the Office for Budget Responsibility said it is expected to rise to £431bn in 2031/32, driven primarily by health-related and pensioner benefit spending.