Andy Burnham's benefits reforms could take TEN YEARS to save money
By JASON GROVES, POLITICAL EDITOR and SAM MERRIMAN, POLITICAL CORRESPONDENT
Published: | Updated:
Andy Burnham was accused of 'kicking the can down the road' on welfare reform last night after it emerged his flagship reforms could take ten years to deliver any savings.
The Government is due to publish Alan Milburn's review of youth unemployment next week, which will call for billions of pounds in upfront investment to help young people find jobs.
The report is at the heart of the Prime Minister's claim that the Government will cut the welfare bill 'in a Labour way'.
But Whitehall sources admitted that the plans, which involve heavy investment in back-to-work schemes, could take a decade to deliver savings.
Speaking to journalists at a gathering of EU leaders, Mr Burnham did not challenge the timeline but insisted the plans would not involve 'more money' as savings would be found elsewhere in government to fund the upfront costs.
The welfare bill is due to rise sharply in the coming years.
Payments for health and disability benefits alone are forecast to jump from £85.6 billion last year to £120.2 billion by the end of the decade.
Andy Burnham's welfare reforms could take a decade to deliver savings
Meanwhile, the wider welfare bill is forecast to rise from £333.8 billion to £431.3 billion over the same period.
Opposition politicians said Britain could not afford to wait ten years to curb welfare spending.
Reform UK's Treasury spokesman Robert Jenrick told the Mail: 'No amount of reviews will change the Labour Party's addiction to benefits. This is yet another can-kicking exercise, with taxpayers made to fork out billions more in taxes to pay for Burnham's weakness.'
Mr Burnham also faces a growing Labour backlash over Mr Milburn's proposal to strip young people of sickness benefits.
The review will call for under-25s to be barred from the health element of universal credit and personal independence payments (PIP), with the savings used for back-to-work schemes.
Labour MPs warned against the creation of a two-tier benefit system in which young disabled people would receive less. Backbench Labour MP Brian Leishman said: 'Taking money off young disabled people who cannot work will not incentivise anyone into work.
'To think that it will, is ludicrous.'
It came as the Prime Minister refused to commit to implementing Mr Milburn's recommendations in full, raising the possibility he could back down over the idea of stripping benefits from existing claimants.
Asked if he would implement the full package of Mr Milburn's review, he told reporters: 'There's lots of detailed recommendations, so I can't give you that blanket assurance here tonight.'
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