Prime Minister Burnham stated his desire to cut the welfare bill "as soon as we possibly can," but faced questions regarding the timeline and specifics of his administration's approach. Opponents have criticized the recent budget for its perceived lack of detail on welfare reform, with the Prime Minister not outlining a specific timetable for any reductions.
Burnham, speaking during a visit to Derby, emphasized that the government's priority is to "support people to help people off benefits and into work." He reiterated that the aim is to achieve this "as quickly as possible," but cautioned against "crude cuts" that could lead to people ending up in crisis and costing more public money in the long run. The focus, he explained, is on enabling people to find "sustainable employment."
The Treasury disputed interpretations that Chancellor John Healey had suggested to the BBC that the benefits bill would be cut before the next election, which must be held by August 2029. When asked by Radio 4's Today Programme about a reduction before polling day, Healey had responded, "There will be, there will be a reduction in the benefits bill, we'll do that in a Labour way." However, Downing Street later clarified that it was "not setting an arbitrary target or timetable." The Prime Minister's official spokesman declined to specify whether the government's ambition meant reducing welfare spending below its current level or simply slowing its projected rate of increase.
Further details on the government's welfare reform proposals are anticipated following the publication of two significant reports in November. One report is a review of disability benefits, co-chaired by Labour minister Sir Stephen Timms, and the other focuses on young people not in education, employment, or training (Neet), led by former minister Alan Milburn. These reviews were initially announced by former Prime Minister Sir Keir Starmer after an earlier attempt at significant welfare system changes, including restricting eligibility for some health-related benefits, faced substantial opposition from Labour MPs in June 2025.
Economist Andy Haldane, formerly of the Bank of England, suggested that a credible plan for "greater restraint" on the benefits bill would be favorably received by financial markets. Conservative Party leader Kemi Badenoch criticized the government's approach, stating the country is "overspent, overborrowed, overtaxed, and drowning in an out-of-control welfare system." Reacting to the government's remarks on the welfare bill, Badenoch commented that it "looks like foot in mouth syndrome is spreading."
Welfare spending is projected to increase by £19 billion this year, reaching £353 billion. The Office for Budget Responsibility (OBR) forecasts this figure to rise to £431 billion by 2031/32. This increase is primarily attributed to spending on health-related and pensioner benefits. Of the projected 2031/32 total, £209.8 billion is allocated to pensioners, including the state pension and winter fuel payments, with £110.7 billion for universal credit and related benefits, and £69.6 billion for disability benefits like personal independence payments. The government has already committed to reforming the state pension triple lock from 2030, with additional welfare system changes expected in the coming months.