John Healey denies postponing difficult welfare system decisions

John Healey has denied postponing difficult decisions on the welfare system, insisting the Government is making changes “now”.

The Chancellor’s Budget has faced criticism for not dealing with the ballooning cost of welfare, including from Tory leader Kemi Badenoch, who said the country is “drowning in an out-of-control welfare system”.

The influential Institute for Fiscal Studies think tank warned the Budget delayed tough decisions.

Speaking to GB News, Mr Healey said ministers have already brought in a range of measures to cut the cost.

He told the broadcaster: “This was a broken system. And two years ago we started putting back in place face-to-face assessments. We’ve changed terms of universal credit, so people don’t have to brand themselves as too sick to work.

“So, those are changes we’re making now. But in the long run, as I’ve argued, and the Prime Minister has said, too, we have to bring the cost of benefits down.

“We will, but we have to do that, especially for our young people, in a way that gives them a chance to make something of themselves. And when we’ve got a million youngsters that aren’t working and aren’t in education or training, that’s a moral duty to do this, and we will.”

The Chancellor told BBC Radio 4’s Today that the Government “can never remove completely the cost-of-living pressures that people feel”.

He continued: “We can help where we can and that’s what I’m doing with creating a bit of breathing space for these households.”

He also told Today that “crude cuts” to the welfare system would be a bad idea when “people are feeling the cost-of-living pressures”.

However, Mr Healey vowed there would be a “reduction in the benefits bill” before the next General Election, telling the programme: “There will be a reduction in the benefits bill, we’ll do that in a Labour way and we’ll do that because it is simply not good for Britain or progressive to have a bigger and bigger benefits bill.”

Elsewhere, Mr Healey said Brexit had affected the UK’s “level of growth”.

He told LBC’s Nick Ferrari at Breakfast: “It’s certainly hit our level of trade. But we had a referendum. We’re out of the European Union.

“The challenge for me now is how do we make the best of an economy which this year has proved remarkably resilient.”

Published: 29/10/2026 by Radio NewsHub