New Chancellor John Healey, appointed by Prime Minister Andy Burnham on Monday night, has limited public comments on the Department for Work and Pensions (DWP) welfare system and the rising benefits bill. However, his past statements reveal a critical stance on welfare cuts.
Healey's Previous Criticism of Welfare Cuts
Responding to George Osborne's Budget a decade ago, Healey condemned the Conservative politician's £12 billion round of cuts as a political 'choice' rather than a necessity. This suggests Healey may be reluctant to pursue aggressive cuts to sickness and disability benefits, which had provoked a near-rebellion among backbench MPs under former Prime Minister Sir Keir Starmer.
Current Context and Government Position
Work and Pensions Secretary Pat McFadden has stated he is 'not ruling anything out' regarding benefit reforms, while Prime Minister Burnham has said he will not make 'crude' cuts. Healey's role as Chancellor now places him at the center of this contentious issue.
Healey's First Cabinet Meeting
On Tuesday, Healey paid tribute to former Chancellor Rachel Reeves at the first Cabinet meeting under Burnham. He praised Burnham's announcement of a VAT cut on electricity bills, part of an £850 million package. Addressing colleagues, Healey said: 'We're only doing that because of the reprioritisation of the tough decisions that actually Rachel and the previous cabinet have taken to establish financial discipline to enable growth.'
Cost of Living Measures
Healey told the Cabinet that the VAT cut on electricity bills 'won't solve the cost of living but it does indicate that we are offering a bit of help… we are offering a bit of hope.' Burnham concluded by stating his government will 'always show how we are going to pay for it' before asking cameras to leave.
