Key facts
- Healey said the current benefits system was unsustainable and the government had a moral duty to help almost one million young people out of work, education or training.
- Healey said two big reports next month would help map out changes to the system for the long run.
- A disability benefits review co-chaired by Labour minister Sir Stephen Timms and a review of young people not in education, employment or training led by former minister Alan Milburn will be published in November.
- The government is expected to respond by the end of the year and publish a policy document, with legislation next year, the BBC reported.
- Welfare spending is forecast to rise by £19bn to £353bn this year and to £431bn in 2031/32, according to the Office for Budget Responsibility.
- Of the 2031/32 forecast, £209.8bn is on pensioners, including the state pension, the OBR said.
UK Chancellor John Healey said on October 29, 2026 that there would be a reduction in the benefits bill, in an interview with BBC Radio 4's Today program. Asked whether there would be a cut before polling day, he said: "There will be, there will be a reduction in the benefits bill, we'll do that in a Labour way."
Several Treasury sources took issue with that being interpreted as a promise to cut welfare before the next general election, the BBC reported, with one suggesting Healey was explicitly attempting to avoid that impression. That suggests ministers are not committed to cutting the benefits bill by the next election.
Healey said the current system was unsustainable and the government had a moral duty to help the almost one million young people out of work, education or training. He said young people would be expected to take up offers of work or training.
He said two big reports next month would help the government map out changes to the system for the long run. A review of disability benefits co-chaired by Labour minister Sir Stephen Timms and one on young people not in education, employment or training led by former minister Alan Milburn will be published in November. The government is then expected to respond by the end of the year and publish a policy document, with legislation next year.
The Conservatives accused Labour of being addicted to welfare, while Reform UK said the Budget did not address the ballooning benefits bill. Welfare spending is forecast to rise by £19bn to £353bn this year and to £431bn in 2031/32, according to the Office for Budget Responsibility, driven primarily by health-related and pensioner benefit spending. Of the 2031/32 figure, £209.8bn is on pensioners, including the state pension.