By Fatma Younis
Chancellor John Healey has insisted the government will reduce the ballooning welfare bill, even as his Budget delayed major changes until 2027. The Office for Budget Responsibility (OBR) forecast that health-related benefits will cost £105bn by the 2028-29 financial year, with three quarters of payments going to working-age adults.
OBR warns of soaring benefits cost
The OBR predicts total spending on sickness benefits and personal independence payments will exceed £100bn by the end of the decade. The watchdog's figures underscore the scale of the challenge facing the Treasury.
Healey defends record and promises action
Speaking to broadcasters, Healey said ministers have already reintroduced face-to-face assessments and altered universal credit terms so people do not have to label themselves as too sick to work. He vowed a reduction in the benefits bill before the next general election, insisting it would be done "in a Labour way".
Criticism over delayed decisions
Conservative leader Kemi Badenoch accused the government of presiding over an "out-of-control welfare system". The Institute for Fiscal Studies also warned the Budget postponed tough choices. Healey argued that "crude cuts" would be wrong while households face cost-of-living pressures.
Reforms await youth unemployment review
The chancellor said major welfare changes would wait for the outcome of Alan Milburn's review into youth unemployment, due next month. He acknowledged the government "can never remove completely the cost-of-living pressures that people feel" but pledged to create "breathing space" for households.
