By Ahmed Abdelsalam
Chancellor John Healey has pledged a reduction in the UK's benefits bill before the next general election, defending his first Budget against criticism that it lacked detail on welfare reform.
Welfare spending forecasts
The Office for Budget Responsibility forecasts welfare spending will rise by £19bn to £353bn this year and reach £431bn by 2031/32, driven by health-related and pensioner benefits. The government has also pledged to reform the state pension triple lock from 2030.
Reviews and timeline
Two major reviews — one on disability benefits co-chaired by Sir Stephen Timms and another on young people not in education, employment or training led by Alan Milburn — will be published in November. The government plans to respond by year-end and introduce legislation next year. Healey ruled out "crude cuts" and said there is a "moral duty" to help nearly one million young people out of work, education or training.
Political reaction
Conservative leader Kemi Badenoch accused Labour of being "addicted to welfare," while Liberal Democrat leader Sir Ed Davey urged reform that helps people into work. Former chancellor Sir Jeremy Hunt warned that delaying difficult decisions will make them harder later.
Energy bill support
Healey also announced a one-off £100 payment for households in council tax bands A to D in England to help with energy costs, funded by a tax on bank profits. Gas standing charges are set to be scrapped during 2027.
