By Basant El-Faramawy
The government is working “flat out” to reduce the ballooning welfare bill, Prime Minister Andy Burnham said on Thursday after the Office for Budget Responsibility warned that sickness and disability benefits could cost £100 billion a year by the end of the decade.
PM insists rapid action on benefits spending
During a visit to Derby, Burnham told reporters the government wants to bring the welfare bill down as quickly as possible and is focusing on the forthcoming Milburn report to help move people off benefits and into work.
Chancellor pressed on timeline for cuts
Chancellor John Healey faced repeated questions from broadcasters about when the benefits bill would start falling. In a BBC interview he said there would be a reduction “in a Labour way,” but Treasury officials later stressed he was not setting a specific timeframe.
Downing Street denies arbitrary targets
A Downing Street spokesman said the chancellor remains in line with the prime minister’s position that the welfare bill must come down, but the government is not setting an arbitrary target or timetable. Further details will follow two major reviews due next month.
IFS warns on living standards and defence spending
The Institute for Fiscal Studies said the government’s cost‑of‑living packages will not prevent household incomes from falling, calling this decade the worst on record for income growth. The think tank also criticised the decision to fund a £4.7 billion defence investment shortfall from Treasury reserves, narrowing options for future shocks.
