Burnham’s welfare plans may take a decade to deliver savings

Andy Burnham’s proposed welfare reforms may take up to ten years to produce savings, prompting criticism that the Government is delaying action as benefit spending is forecast to rise sharply. The plans centre on investing in schemes to help people, particularly young people, into work, and are part of the Prime Minister’s pledge to reduce welfare spending.

Health and disability benefit payments are forecast to rise from £85.6 billion last year to £120.2 billion by the end of the decade, while the wider welfare bill is expected to grow from £333.8 billion to £431.3 billion. Alan Milburn’s review is expected to propose barring under-25s from the health element of Universal Credit and from PIP, with savings redirected to employment support. Some Labour MPs warn this could disadvantage young disabled people, and the Prime Minister has not committed to adopting the review’s recommendations in full.