Key facts
- Welfare spending is forecast to rise from £353bn this year to £431bn in 2031/32.
- Disability benefits spending is projected at £69.6bn in 2031/32.
- Universal credit and legacy equivalents spending is forecast at £110.7bn in 2031/32.
Andy Burnham, a UK politician, expressed his intention to reduce the welfare bill rapidly, emphasizing a focus on helping people find sustainable employment. However, he was unable to commit to achieving these cuts before the upcoming general election. The government's approach aims to avoid "crude cuts" that could lead to further crises and increased public spending elsewhere.
Treasury sources and Downing Street offered cautious responses to interpretations of a firm timeline for welfare bill reduction, with the prime minister's official spokesman stating no arbitrary target or timetable was being set. Further details on the government's welfare reform proposals are anticipated following the publication of two significant reviews in November: one on disability benefits, co-chaired by Labour minister Sir Stephen Timms, and another on young people not in education, employment or training, led by former minister Alan Milburn.
Former Bank of England chief economist Andy Haldane suggested that a clear plan for controlling the benefits bill would be highly beneficial for financial markets. Meanwhile, Conservative Party leader Kemi Badenoch criticized the government's budget, arguing that insufficient action on welfare spending has harmed economic and national security.