Chancellor John Healey has pledged that Britain's welfare bill will be reduced before the next general election, addressing criticisms that his first Budget lacked detail on welfare reform. Healey stated that a continuously growing benefits bill is "simply not good for Britain or progressive" and described the current system as unsustainable.

Healey's remarks come as welfare spending is forecast to increase significantly, with the Office for Budget Responsibility (OBR) projecting a rise of £19 billion this year to £353 billion. The OBR further forecasts this figure to climb to £431 billion by 2031/32, largely driven by health-related and pensioner benefits. The government has already indicated changes to the state pension triple lock from 2030, with further welfare system reforms anticipated.

While ruling out "crude cuts," Healey indicated that more specific details on the government's approach will emerge after two major reviews are published next month. He highlighted that a review of disability benefits, co-chaired by Labour minister Sir Stephen Timms, and a review on young people not in education, employment, or training (Neet) led by former minister Alan Milburn, are both due in November.

The government is expected to respond to these reviews by the end of the year, with a policy document and subsequent legislation planned for the following year. Healey expressed a "moral duty" to help the nearly one million young people currently not engaged in education, employment, or training, suggesting that enabling them to "fulfil their potential and contribute to the economy" could help reduce the welfare bill long-term.

Opposition parties have voiced concerns about the rising welfare expenditure. Conservative Party leader Kemi Badenoch accused the government of being "addicted to welfare" and described the country as "drowning in an out-of-control welfare system." Reform UK also criticized the Budget for not addressing the "ballooning benefits bill."

Liberal Democrat leader Sir Ed Davey stressed that welfare reform must be implemented correctly, focusing on helping people into work and providing necessary care and support. He suggested this approach could contribute to reducing the bill.

Helen Miller, director of the Institute for Fiscal Studies, noted that the government faces "many difficult decisions" as key issues like disability benefits and support for young people remain underexplored in the current proposals. The path to achieving a reduced welfare bill is thus anticipated to involve complex policy choices.

Healey reiterated his commitment to reducing the benefits bill, stating it would be done "in a Labour way." The specific mechanisms and policies to achieve this reduction, however, are expected to be detailed following the publication and governmental response to the upcoming review reports.