By Fatma Younis
UK Chancellor John Healey has pledged to reduce the welfare bill before the next election, adopting what he described as a “tough” approach to young people who decline job or training offers. He ruled out “crude cuts” but insisted the system is unsustainable.
OBR Warns of Soaring Disability Benefit Costs
The commitment came after the Office for Budget Responsibility forecast that sickness and disability benefits would cost £100bn a year before the end of the decade. Total welfare spending is projected to rise from £334bn last year to £431bn by 2030.
Budget Offers Energy Relief but Defers Tough Choices
Healey’s budget on Wednesday included a £100 energy bill discount for up to 20 million households in lower council tax bands and the removal of standing charges on gas bills. However, he deferred decisions on funding defence spending at 3% of national income and did not announce specific welfare changes, leaving those for a future spending review.
Healey Outlines Conditional Approach for Young People
In broadcast interviews, Healey said the government would expect young people to “take up the offers” of support, echoing a model used by the Labour government in the late 1990s. He cited the upcoming Milburn review on youth employment and the Timms review on disability benefits as the basis for future reforms.
Think Tank Warns Support Too Thin
The Resolution Foundation criticised the budget as “scattergun,” arguing that cost-of-living support is spread too thinly. Chief executive Ruth Curtice said typical annual energy bills could reach £1,750 after government support in 2026‑27, higher than during the 2022‑23 energy price shock.
Chancellor Links Economic Prospects to Global Peace
Healey also addressed foreign policy, stating that peace in the Middle East and Ukraine would be the single best boost for UK economic policy. He said he would work with US President Donald Trump if it helped bring parties together.
