Chancellor says welfare reforms are already underway

Chancellor John Healey said on Thursday morning that the government is actively changing how benefits work, pushing back against critics who say the Budget delayed necessary spending cuts. He said that ministers have already implemented several measures to lower the cost of the welfare system.

Healey stated that the previous system was broken. He noted that the government began reinstating face-to-face assessments two years ago. He also said the government changed the terms of Universal Credit so applicants do not have to describe themselves as too sick to work. He called these actions changes being made now rather than future promises.

The Chancellor acknowledged that the long-term goal is to reduce the total cost of benefits. He argued that this reduction must happen in a way that gives young people a chance to build their lives. He pointed to one million young people who are not working and are not in education or training. He called addressing that gap a moral duty for the government.

Critics had argued the Budget did not address the rising cost of welfare. Conservative leader Kemi Badenoch said the country is drowning in an out-of-control welfare system. The Institute for Fiscal Studies think tank warned that the Budget delayed tough decisions. Healey denied that difficult decisions were being postponed, insisting the current administration is acting immediately.

Speaking to BBC Radio 4’s Today program, Healey said the government cannot completely remove cost-of-living pressures from households. He said he is creating breathing space for families by helping where possible. He described crude cuts to the welfare system as a bad idea while people feel those economic pressures.

Healey vowed there will be a reduction in the benefits bill before the next General Election. He said the government will achieve this in a Labor way. He argued that it is not good for Britain or progressive for the benefits bill to keep growing larger.

In comments to LBC’s Nick Ferrari, Healey said Brexit affected the United Kingdom’s level of growth. He said it hit the level of trade. He noted the country held a referendum and is out of the European Union. He said his current challenge is to make the best of an economy that has proved resilient this year.