Former UK 'Cost of Living Tsar' Urges Welfare Overhaul at Budget

Lord Walker, the chairman of Iceland supermarket and a Labour peer, has called for a significant welfare overhaul in the upcoming Budget, stating, "I joined the Labour Party, not the benefits party." He urged Chancellor John Healey to focus on making work more financially rewarding and to reduce the burden on employers.

Walker advocated for "a meaningful cash reward for people who move from long-term benefits into a job and stay there," as well as tax relief for companies that employ younger workers. He also suggested slashing corporation tax for small businesses and entrepreneurs to stimulate economic growth.

Having served as former Prime Minister Keir Starmer's "cost of living tsar" until July, Walker cited his experience within the government, noting "how painfully slow decisions can be." While pledging support for Prime Minister Andy Burnham and Chancellor Healey, he emphasized that "good intentions aren't enough" and called for concrete action ahead of Healey's first Budget.

In an article for the Sun on Sunday, Lord Walker articulated his belief that "work gives people dignity, independence and a stake in society." He expressed concern over the current situation where "one in seven households has nobody in work and around 1.3 million children are growing up in long-term workless households." He stressed that "leaving people languishing on benefits when they could be working isn't compassion. It's letting them down."

Despite Walker's calls for immediate welfare reform, reports suggest that a major report on youth inactivity has been delayed to avoid overshadowing the Budget. Two reports, one on youth unemployment by Alan Milburn and another on disability benefits by Stephen Timms, are expected next month, with proposed welfare reforms anticipated next year.

Lord Walker was appointed as Starmer's "cost of living champion" in February. He is the son of Iceland's founder and previously sought to become a Conservative MP before switching his allegiance to Labour. He has previously expressed criticism of the government's performance and tax policies affecting businesses. He was granted a life peerage earlier this year.