Andy Burnham has said he wants to reduce the UK’s welfare bill “as soon as we possibly can”, but he has been unable to guarantee that spending will fall before the next general election.
The comments come amid criticism over the lack of detail on welfare reform in Wednesday’s Budget. Government forecasts suggest welfare spending will rise from £353bn this year to £431bn by 2031/32.
Asked whether he would seek to reduce the bill before the next general election, Burnham told reporters: “We want to get the welfare bill down as quickly as possible, and we’re working flat out to that end.”
However, he warned against making what he described as “crude cuts”, arguing that the priority should be helping people move into “sustainable employment”. The Conservatives, meanwhile, accused Labour of being “addicted to welfare”.
Government Faces Questions Over Welfare Spending
The Prime Minister has faced questions about the government’s approach after the Treasury disputed claims that Chancellor John Healey had promised the benefits bill would fall before the next election, which must be held by August 2029.
During an interview with BBC Radio 4’s Today programme, Healey was asked whether the bill would be reduced before polling day. He replied: “There will be, there will be a reduction in the benefits bill, we’ll do that in a Labour way.”
However, several Treasury sources challenged the interpretation that this amounted to a firm commitment to cut spending before the election. Downing Street subsequently said the government was “not setting an arbitrary target or timetable”.
The Prime Minister’s official spokesperson also declined to clarify whether the government wanted welfare spending to fall below its current level or simply to grow more slowly than currently forecast.
Further details of the government’s plans are expected after two major reports are published in November. One is a review of disability benefits, co-chaired by Labour minister Sir Stephen Timms. The other will examine young people not in education, employment or training (NEET) and is being led by former minister Alan Milburn.
The reviews were announced by former Prime Minister Sir Keir Starmer following his attempt to introduce significant welfare changes, including restrictions on eligibility for some health-related benefits. That proposal triggered a major revolt among Labour MPs and an embarrassing government climbdown in June 2025.
Burnham Highlights Employment as a Priority
Speaking during a visit to Derby, Burnham described the forthcoming Milburn report as the government’s “big next priority”.
He said the government wanted to focus on helping people leave benefits and enter employment.
“We just want to get stuck into supporting people to help people off benefits and into work. There’s no delay there. We want that to happen as quickly as possible,” he said.
Asked again about the timetable for reducing welfare spending, Burnham reiterated the government’s ambition to act quickly while supporting people into work.
He warned that straightforward spending cuts could leave vulnerable people in crisis and potentially increase public spending elsewhere.
“If we just went and made crude cuts, in the end, that leaves people in crisis, and you spend more public money somewhere else, so it’s about getting people into sustainable employment,” he said.
Former Bank of England Economist Says Restraint Could Benefit Markets
Andy Haldane, a former chief economist at the Bank of England who has previously advised Burnham, said a clear government plan to exercise greater restraint over welfare spending could be welcomed by financial markets.
Speaking to the BBC’s Political Thinking with Nick Robinson podcast, Haldane said such a plan would “play spectacularly well” with the markets.
“If the government could get that through I think it would come with a huge bonus,” he added.
Conservatives Criticise Budget
Conservative Party leader Kemi Badenoch criticised the Budget, saying the country was “overspent, overborrowed, overtaxed, and drowning in an out-of-control welfare system”.
Responding on Thursday to government briefings and comments about when welfare spending might be reduced, Badenoch said it “looks like foot in mouth syndrome is spreading”.
She added: “Don’t let anyone tell you this was a ‘do no harm budget’. In doing so little, Labour have harmed our economic security and they’ve harmed our national security.”
Welfare Spending Forecast to Reach £431bn
Welfare spending is forecast to increase by £19bn this year, reaching £353bn.
According to the Office for Budget Responsibility (OBR), the figure is expected to rise to £431bn by 2031/32, driven primarily by spending on health-related benefits and support for pensioners.
Of the projected total for 2031/32:
- £209.8bn is expected to be spent on pensioners, including the state pension and winter fuel payments.
- £110.7bn is forecast to go towards Universal Credit and equivalent legacy benefits.
- £69.6bn is expected to be spent on disability benefits, including Personal Independence Payment (PIP).
The government has yet to set a firm deadline for reducing the welfare bill. Its forthcoming reviews are expected to provide further details on how it intends to help more people into work while managing rising benefit costs.
Source: BBC News
Written by: Richard Wheeler, Political Reporter
