Prime Minister Andy Burnham's first Budget is set to prioritise benefits over hard work, according to an opinion piece by Giles Sheldrick. The article claims the upcoming financial statement will be good news for those on benefits but bad news for working families, as Labour focuses on welfare spending over supporting those who work.
£1bn Energy Bill Aid Package
On October 28, Chancellor John Healey is set to announce an aid package of more than £1bn to help those struggling to pay their utility bills. The bulk of this will benefit out-of-work households on benefits, who will receive discounts. The article describes this as potentially the most shamelessly socialist budget in decades, with tax rises to pay for additional spending considered a given.
Mr Healey is rumoured to be preparing to announce an extension of the Warm Homes Discount, a £150 reduction to energy bills offered to households on certain benefits. There is also a further £100 concession, but this would be funded by taxpayers rather than bill-payers.
VAT Cut and Energy Price Cap Forecast
In one of his first acts after becoming PM, Mr Burnham temporarily cut VAT on domestic electricity bills from 5% to 0% for six months until March. However, forecasts suggest the energy price cap, which limits the maximum price suppliers can charge for each unit of gas and electricity on default tariffs, could shoot up by as much as £442 in January.
The article argues the help on offer shows where Labour's priorities rest, claiming it is not with the elderly, strivers, savers, businesses, or defence. Instead, it is with those who contribute little or nothing.
Record Welfare Spending
Labour spent £329.1bn on benefits in 2025/26, a figure equal to 10.7% of GDP and roughly £4,700 per person. This dwarfs the £257bn spent on the NHS, the £126bn spent on education, and the £62bn spent on defence. The welfare bill increased by about £18.8bn in the last financial year and is forecast to rise to £408.6bn by 2030/31, in part fuelled by disability and incapacity benefit payments.
The article concludes by quoting an exasperated taxpayer who said: "Is anybody else sick of working to have this Labour government take more of it off you, to give away in benefits to those already on benefits? It's ridiculous now."
