Chancellor John Healey has been forced into a U-turn over plans to slash benefits before the next election, leaving taxpayers facing a £100bn welfare bill. Labour endured a day of Budget chaos as Mr Healey announced he would cut the benefits bill, only for aides to deny the commitment had been made.
A Day of Contradictions
On Thursday morning, the Chancellor told broadcasters he would take an axe to the welfare state. Hours later, aides denied that any such commitment had been made. Prime Minister Andy Burnham then dismissed the claim, saying there was no "timetable" for any cuts.
Mr Burnham himself faced a similar row earlier this week when he promised a referendum on rumours that he was ready to sign the UK up to the EU Freedom of Movement scheme. Spin-doctors denied the claim, despite video footage of him making it.
Official Denials
The same tactic was used again on Thursday as No 10 said Mr Healey, despite saying he would bring down welfare costs this Parliament, had actually said no such thing. An embarrassed Chancellor later told Channel 4 News it was "not correct to say we are going to bring the welfare bill down in this Parliament".
Labour has faced repeated attacks from Conservative rivals, with Kemi Badenoch labelling them the "welfare party". Reform UK's Robert Jenrick has referred to the Prime Minister as "benefits Burnham" when speaking to the media.
Welfare Forecasts
Forecasts accompanying Wednesday's Budget predicted welfare claimants would receive a £6bn windfall, with welfare soaring to more than £100bn a year by 2028/29. On Wednesday night, the Chancellor was filmed downing a pint of beer just hours after hiking the price of one by 2p a glass.
On Thursday morning, he told BBC Radio 4 he had "said clearly [...] we have to bring the benefits bill down", adding that he would not do that with "crude cuts". Tories branded the day an "absolute farce", with Shadow Secretary of State for Work and Pensions Helen Whately saying: "Healey and Burnham cannot help sticking their feet in their mouths."
She added: "After months of promises, Labour have admitted that they are not going to cut the benefits bill in this Parliament. The Welfare Party's backbenchers have finally won. The tough decisions have once again been kicked down the road."
