Andy Burnham Vows to Reduce Rising Welfare Bill

Prime Minister Andy Burnham announced that the government is working flat out to reduce the welfare bill after the Office for Budget Responsibility warned that sickness and disability benefits could reach £100 billion annually by the end of the decade. Speaking in Derby on Thursday, Burnham identified the upcoming publication of the Milburn report as a key priority to help transition people from benefits into employment.

Chancellor John Healey confirmed that the benefits bill must be reduced but stated the government will avoid crude benefit cuts because of the ongoing cost-of-living crisis. Treasury officials and Downing Street clarified that the government has not established an arbitrary target or timetable for these reductions.

Economic warnings accompanied the announcement. The Institute for Fiscal Studies cautioned that current cost-of-living measures will not prevent falling living standards. Director Helen Miller noted that the current decade is set to be the worst for growth in household incomes on record. The institute also criticized the Chancellor for using Treasury reserves to cover a £4.7 billion deficit in the defense investment plan.