Andy Burnham and John Healey have been issued an update over Department for Work and Pensions (DWP) welfare cuts, with a leading newspaper warning that cutting welfare spending is the only course to lower public debt. Mr Burnham has paved the way for benefits reforms, saying he will "get serious" over the DWP bill while ruling out "crude" cuts.
Budget Date Set as Inflation Rises
Mr Burnham and his Chancellor John Healey, who replaced the former Chancellor in Number 11 Downing Street as part of Mr Burnham's first Cabinet after the Makerfield MP succeeded Sir Keir Starmer in Number 10, will deliver their first Budget in October. The date of the Autumn Statement has been set for October 28. Ahead of it, Mr Burnham has made the cost of living a priority, promising to help households.
Hard-up households have been given a £2 bus fare cap, a VAT cut on energy bills, and more. But The Times newspaper has warned Mr Burnham and Mr Healey over how to afford it. The editorial states: "Cutting welfare spending is the only course to lower public debt." The editorial goes on: "Rising inflation and global interest rates are adding to the pressure on living standards that Andy Burnham and John Healey have promised to ease."
July's increase in inflation, to 2.9%, poses a challenge to Mr Burnham as he attempts to shield consumers from a fresh cost of living squeeze this autumn.
Industry and Union Warnings on Supply Chains
Liliana Danila, the chief economist of the Food and Drink Federation, warned: "Supply chain disruption isn't going away. Alongside geopolitical volatility, extreme weather will continue to put pressure on the price of key ingredients. This makes it increasingly difficult for food manufacturers to shield consumers from price rises and protect their own resilience."
TUC general secretary Paul Nowak said: "With inflation ticking up because of rising energy bills – and no end in sight to Trump's illegal war in Iran – we are going to have to see more government action to support households in the coming months."
The warnings come after Mr Burnham vowed that he will "get serious" about slashing the welfare bill. "We've got to get really serious as a country [about] getting the welfare bill down," Mr Burnham told the BBC in his first full interview since becoming Prime Minister.
Record Universal Credit Numbers and Ongoing Reviews
The benefits bill continues to soar, with a record number – over eight million – confirmed to be claiming Universal Credit earlier this week. Two reviews into the benefits system, the Milburn Review from Alan Milburn, which is looking at NEETs, and the Timms Review which is analysing changes to Personal Independence Payment, are ongoing.
