Red Wall Labour MPs urge Andy Burnham to cut welfare spending
Northern Labour MPs warned Labour leader Andy Burnham that failing to reduce the welfare bill could cost them seats to Reform UK, as the Office for Budget Responsibility projects a rise in welfare outlays.
Labour leader Andy Burnburn is facing pressure from senior MPs in northern "Red Wall" constituencies to lower the overall welfare bill before the next election. The MPs argue that without cuts, they risk losing voter support to Reform UK, which has pledged substantial welfare reductions.
Burnburn has said the government will focus on job-support measures rather than "crude cuts" to benefits, and he has defended the approach taken in his first budget, citing limited fiscal space due to the war in Iran. He added that the government would not pursue "brutal cuts" that could push people into "absolute crisis".
David Smith, Labour MP for North Northumberland, told the Telegraph: "We obviously need to reduce the overall total of the welfare bill, and that needs to begin during this parliament. We should be as ambitious as we can in reconfiguring our social security system. We need a Beveridge report for the 21st century."
The Office for Budget Responsibility expects welfare spending to rise from £353 billion this year to £431 billion by 2031-32, with roughly half allocated to pensions. Whitehall officials said the total bill would increase next year as the government rolls out employment-support programmes based on reviews by Alan Milburn and Stephen Timms.
Critics within Labour say the proposals are too uncertain to be modelled by the OBR, warning that the lack of clear cuts could force the government into additional borrowing, spending reductions, or tax hikes. John Healey, the shadow chancellor, previously said Labour would "bring down the welfare bill" but later clarified that it would not be achieved within the current parliament.
Helen Miller, director of the Institute for Fiscal Studies, cautioned that reforms other than direct benefit cuts would take time to show results, noting there is "no free lunch" for the Treasury.
Among the ideas under discussion is a scheme to give health-related benefit claimants faster NHS access to help them return to work, and a new volunteering programme for young people that could offer up to 25,000 placements with charities, community groups and the cadet forces. Milburn, leading the youth-unemployment review, said the scheme would provide £100 a month to participants and help build skills valued by employers.
The debate highlights growing tension within Labour over how to balance fiscal responsibility with support for low-income voters ahead of the next general election.