Healey says benefits bill will be reduced; Treasury says his words were misinterpreted

John Healey said on 29 October that "There will be a reduction in the benefits bill," in an interview with the BBC's Today programme. The Guardian reported that he gave the answer when asked whether welfare cuts would come before the next election. The interview was conducted by Nick Robinson and recorded the previous day, then broadcast on the morning of 29 October.

The Treasury responded within hours. According to the Guardian's live coverage, the Treasury said Mr Healey had not committed to cutting the welfare bill before the election, and that his answer had been misinterpreted. BBC political editor Chris Mason reported that Treasury sources said his words had been over-interpreted.

The welfare bill is the total cost of the state's benefit payments. Mr Healey said he would look to reduce spending on benefits by giving people a chance to work, according to City AM. He also ruled out "crude cuts" to welfare spending, as the BBC reported.

The scale of the spending is large and is forecast to keep growing. The BBC reported that welfare spending is forecast to rise this year by £19bn, to £353bn. The Office for Budget Responsibility, the government's fiscal watchdog, forecasts that it will reach £431bn in 2031/32, driven mainly by health-related and pensioner benefits. Reuters reported that welfare spending was set to exceed 11% of the country's economic output in 2026.

Disability benefits are a particular focus. The fiscal watchdog forecasts that they will cost £100bn a year before the end of the decade, according to the Guardian.

Two reviews are also due. A review of disability benefits, co-chaired by Sir Stephen Timms, is due to be published in November. A separate review of young people who are not in education, employment or training, led by Alan Milburn, is also due in November.