Labour

Chancellor Says Welfare Bill Must Fall but Downing Street Rules Out Firm Deadline

The Chancellor says rising welfare spending must be reduced, but Downing Street has confirmed there is no fixed deadline for bringing the overall bill down.

By Staff member • Published 30 October 2026 at 06:35 • 2 min read
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Chancellor John Healey has insisted that Britain’s rising welfare bill must be brought under control, but Downing Street has confirmed that the Government is not committing to a deadline for reducing spending before the next general election. The clarification followed interviews on 29 October, the day after the Budget, in which the Chancellor faced questions about the growing cost of benefits.

Chancellor pressed over rising welfare costs

Mr Healey said the benefits bill needed to come down but rejected crude benefit cuts. He did not guarantee that total welfare spending would be lower before the next election. In a subsequent Channel 4 News interview, he clarified that the Government had not set a timetable to bring the bill down during this Parliament. The Office for Budget Responsibility forecasts continued growth in welfare spending, including pressures associated with health and disability benefits.

Downing Street rejects fixed timetable

The Prime Minister’s official spokesman said ministers were not setting an arbitrary target or timetable. Prime Minister Andy Burnham said the Government was working to reduce the bill as quickly as possible, without specifying when an overall reduction would be achieved. This does not mean the Government has ruled out a fall before the next election: it means no such deadline has been promised.

Two major reviews expected in November

Former minister Alan Milburn is examining young people not in employment, education or training. Sir Stephen Timms is leading a review of Personal Independence Payment. In his Budget speech, the Chancellor said both reports would be published next month, with the Government’s response before the end of 2026 and a White Paper and legislation to follow in 2027. Neither review has yet produced an announced savings target.

Reform rather than across-the-board cuts

The Budget document describes measures including changes to Universal Credit, more face-to-face health and disability benefit assessments, and action against fraud and error. The Treasury says additional anti-fraud measures are expected to save £1.4 billion between 2027 and 2032. These are forecast savings from particular policies, not a promise that the total welfare bill will fall by that amount.

Questions raised in Parliament

During the Commons Budget debate on 29 October, Conservative MPs challenged Treasury minister Lucy Rigby over the apparent difference between the ambition to reduce welfare spending and the absence of a commitment to do so in this Parliament. Ms Rigby repeated that ministers intended to bring the bill down as soon as possible. The exchange is recorded in Hansard.

What happens next?

The Government says it will consider the Milburn and Timms recommendations before publishing further proposals. Until those plans and their estimated financial effects are set out, the timing and scale of any reduction in total welfare spending remain uncertain.

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