Prime Minister Andy Burnham has said welfare costs will have to be reduced to allow the government to spend more in other areas. He is awaiting the outcome of a major review that will recommend how to cut the number of young people not in education, employment or training (Neets) who claim benefits.
Reprioritising Government Spending
During a visit to an employer in Wiltshire on Friday, Mr Burnham was asked how his plans to give young people more career support would align with the need for departments to slash budgets in light of pledges to increase defence funding.
Speaking to Times Radio, the Prime Minister said: "It is going to be difficult. I’m not going to pretend otherwise, but we will reprioritise, and we will find funding to build our response to the Milburn review."
He added: "Of course, in time, the savings will come, and there will be a crossover point, but there will be a need to invest up front in young people. But it’s an investment in society. It’s the right investment to make."
Investment in Young People
Asked whether he accepted the welfare bill would have to rise before falling, Mr Burnham replied: "It wouldn’t be the welfare bill. It would be the investment in the support that teenagers need and the guarantees that I want to put in place for them."
He outlined a proposal for a guarantee of a 45-day work placement for young people between 16 and 18, linked to T-levels, which he said should be available to all young people who want a quality work placement of that kind.
Speaking to the BBC, the Prime Minister was pressed on a timeline for reducing the welfare bill. Both he and Chancellor John Healey have faced scrutiny after the Budget for signalling they want to see it reduced, without committing to a timeframe before a general election.
Welfare Spending Outlook
Mr Burnham told the BBC welfare spending could come down "in time" as a result of more spending on support for Neets. Asked whether this would happen before an election, he said: "You do it in a way that’s sustainable though. And if it could be this parliament, as soon as possible is the thing I would say to you, would want to see that change, that balance shift as quickly as possible."
Ministers are expected to set out their response to the Timms review into disability benefits reform and the Milburn review on getting more Neets into work in the coming weeks. The Office for Budget Responsibility forecasts the welfare bill will rise to £431 billion by the 2031-32 financial year, largely driven by health-related and pensioner benefits.
