Chancellor pledges to cut welfare bill before next general election
Chancellor John Healey has pledged to reduce the welfare bill before the next general election. He made the pledge in an interview with BBC Radio 4's Today programme. The welfare bill is the total the state spends on benefits.
The Office for Budget Responsibility (OBR), which forecasts the public finances, expects welfare spending to rise to £353bn this year. It forecasts a rise to £431bn in 2031/32. BBC News
Healey said any cuts to welfare would be made "in a Labour way". He also said the government had a "moral duty" to help the almost one million young people who are out of work, education or training.
At Labour's annual conference in Liverpool in September, Healey said cutting welfare spending was "more than an economic must". He said it was "a moral duty". BBC News
The Conservatives accused Labour of being "addicted to welfare". Reform UK said the Budget did not address the "ballooning" benefits bill.
Most benefit policy is set at Westminster, although Scotland has some devolved powers over certain payments.
The Budget 2026 includes £100m for a Local Apprenticeship Service, which would match young people with local firms. Budget 2026 speech, GOV.UK According to the same document, the service is funded from savings in welfare fraud and error.
