Healey pledges to cut benefits bill before next election

John Healey has promised to reduce the benefits bill before the next general election, but says the government will not make “crude cuts” and has yet to set out how it plans to do it.

The chancellor made the pledge after Labour’s first Budget was criticised for lacking detail on welfare reform. He told the BBC that a rising benefits bill was “not good for Britain or progressive” and called the current system “unsustainable”.

Two reviews — one on disability benefits and another on young people not in education, employment or training — are due to be published in November. The government is expected to respond by the end of the year, publish proposals and bring forward legislation next year.

The Office for Budget Responsibility forecasts welfare spending will rise by £19bn this year to £353bn, then reach £431bn in 2031-32. It says the projected increase is driven mainly by health-related and pensioner benefits.

Healey said helping nearly one million young people who are out of work, education or training to fulfil their potential could help bring the bill down over time. He has also backed expanding apprenticeships as a route into work, with the wider scheme due to begin in England in March 2027, subject to mayors choosing to take part. Chancellor expands apprenticeship plan amid call to cut welfare spending

Opposition parties attacked the Budget from different directions. Conservative leader Kemi Badenoch said the benefits bill was rising by tens of billions because the government had “put welfare first”. Liberal Democrat leader Ed Davey said reform should help people into work while providing the care and support they need. The Institute for Fiscal Studies’ Helen Miller said difficult decisions remained, including on disability benefits and support for young people.

Healey has not yet detailed the measures behind his pledge. The reviews and the government’s response are expected to provide the next indication of how it intends to reduce the bill.