Treasury Will Not Commit to Reducing Welfare Bill Before Next Election

The UK Treasury has disputed that Chancellor John Healey made a firm commitment to reduce the benefits bill before the next general election. According to reported remarks, Healey told the BBC's Today programme that there would be a reduction in the benefits bill done in a "Labour way," but Treasury sources later distanced themselves from interpreting this as a fixed pre-election promise.

Background on Welfare Spending

The Office for Budget Responsibility (OBR) forecasts welfare spending to rise by £19bn to £353bn this year, with projections reaching £431bn by 2031/32. This projected increase is driven primarily by health-related and pensioner benefit spending.

Upcoming Reports and Reforms

• Two major reports addressing disability benefits and young people not in education, employment, or training (Neet) are scheduled for publication in November.
• The government is expected to respond to these findings by the end of the year and introduce policy proposals and legislation next year.
• Chancellor Healey emphasized a long-term approach, noting that the current system is unsustainable and that addressing youth unemployment is a priority.

Political Reactions

The debate follows responses to recent budget announcements from opposition figures. Conservative Party leader Kemi Badenoch criticized the rising welfare costs, while Liberal Democrat leader Sir Ed Davey argued that reforms should focus on helping people into work.

Readers can verify official government updates and economic forecasts by consulting primary publications from the Treasury and the Office for Budget Responsibility.