A new report from the Joseph Rowntree Foundation (JRF) warns that "blunt" benefit cuts are not the answer to Britain's rising welfare bill, urging Labour to focus on reducing unemployment instead.
The research found that voters support addressing root causes of social security spending, such as worsening public health and rising rents, rather than cuts. Economists at the anti-poverty unit discovered that achieving the government's target of 80% employment among working-age people would reduce the cost of Universal Credit by £10bn.
This comes ahead of Alan Milburn's interim report on tackling young people not in education, employment, or training (Neet), expected later this week. Nearly 1 million young people aged 16 to 24 are Neet, the highest in over a decade. Milburn warned of a "catastrophic system failure" leaving young people "abandoned" to welfare.
The JRF pushes back against the "dominant political narrative" of spiralling welfare spending, citing official projections that non-pensioner benefits will remain flat at around 5% of GDP for the rest of the parliament.
Sam Tims, JRF's lead analyst, stated: "We know what happens when the holes in the safety net are made ever bigger. The reasons people need support don't disappear, instead low-income families go hungry. Government should focus on root causes of economic insecurity, like decent jobs, affordable homes, and better health."
A survey of over 4,000 voters by More In Common found that 59% support reducing the welfare bill by tackling underlying causes, while 20% favour restricting eligibility, and 8% reducing claimant amounts.
Milburn's final report later this year is expected to recommend benefit reforms for young people, which may prove controversial. Last July, the government U-turned on plans to cut Personal Independence Payment (PIP) after over 100 Labour MPs threatened revolt. Disability minister Sir Stephen Timms is now reviewing the benefit.
A DWP spokesperson said: "Reforming welfare is about getting people who can into work. Our investment in subsidised work, jobs grants, apprenticeships and training will support half a million young people. Putting the Right to Try into law allows people on sickness and disability benefits to try work without fear of losing benefits, while our £3.5bn investment in employment support for sick and disabled people gives them genuine help to move into work and out of poverty."
