Healey Vows Welfare Cuts Before Next Election

Sickness and disability benefits are projected to cost the UK government £100bn a year before the end of the decade, a figure that has forced Chancellor John Healey to promise a reduction in the total welfare bill before the next general election.

Healey made the pledge in broadcast interviews on Wednesday, following his budget presentation. He stated plainly that the government must bring the benefits bill down. He characterized the current system as unsustainable but assured listeners there would be no crude cuts to support those in need.

The Chancellor acknowledged the pressure from Labour MPs who previously blocked Keir Starmer’s attempts to trim disability benefits. Healey aligned himself with Andy Burnham in rejecting sharp reductions, yet he maintained that the scale of spending requires action. He said the government would wait for two specific reports before announcing changes: the Milburn review on young people and work, and the Timms review on the disability benefit system.

When asked directly if the overall bill would fall before the next election, Healey confirmed it would. He said the reduction would be handled in a Labour way, arguing that a constantly growing benefits bill is not good for Britain or its progress.

The Office for Budget Responsibility data driving this urgency shows total welfare spending rising from £334bn last year to £431bn by 2030. About half of that total goes to pensioners, while a quarter covers sickness and disability. Forecast spending has increased by £8bn since March.

Healey’s approach to young people will involve tougher conditions. In an interview with Good Morning Britain, he referenced the last Labour government’s strategy in the late 1990s, when youth unemployment in his South Yorkshire constituency stood at one in five. He said the response then was to be tough on those refusing work or training offers while providing real support. He recalled telling young people they had real potential, a message he intends to repeat now.

The budget offered modest relief to most households, including £100 off energy bills for up to 20 million homes in council tax bands A to D. Healey said these choices were designed to give families breathing space, funded by higher taxes on banks and landlords. The budget also scraps standing charges on gas bills.

However, the Resolution Foundation criticized the package as scattergun. Ruth Curtice, the thinktank’s chief executive, said cost of living support is being spread too thinly. She noted that typical annual energy bills are expected to reach £1,750 in 2026-27, which is higher than the £1,685 peak during the 2022-23 price jump after Russia’s invasion of Ukraine. Curtice argued that even families receiving help will face higher energy costs than during the last shock.

Healey deferred major decisions on funding defence spending at 3% of national income to the upcoming spending review. He also linked economic policy to global stability, stating that peace in the Middle East and Ukraine would be the best outcome. He called US President Donald Trump the one man who could bring parties together, noting the government wants to reopen the strait of Hormuz and end the Russian invasion of Ukraine.