25 publishers · first seen Tue, 27 Oct 2026 15:01 UTC · updated Sun, 01 Nov 2026 19:55 UTC
Chancellor John Healey has stated that the overall benefits bill will come down under Labour, clarifying that media interpretations suggesting a reduction before the next general election were 'simply wrong'. He confirmed that changes to the welfare system will begin next year, following two upcoming reviews by Sir Stephen Timms on personal independence payments and by Alan Milburn on youth unemployment, with a white paper and legislation expected next year. The Office for Budget Responsibility (OBR) has forecast that sickness and disability benefits could cost £100 billion annually before the end of the decade.
Tory leader Kemi Badenoch accused Labour of leaving a £49 billion 'black hole' in the nation's finances, claiming this would require tax increases of £1,700 per household per year by 2030-31. The Institute for Fiscal Studies highlighted £28 billion in 'plausible spending pressures', while the Treasury defended the Budget as fiscally responsible. Healey also declined to confirm whether Labour would meet its manifesto pledge to equalise minimum wage rates for younger workers by the next election, saying it was a question of 'when' and 'how fast'.
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