Chancellor John Healey has brought back plans for welfare reform as he vowed not to allow Britain’s benefits bill spiral out of control, reports BritPanorama.
Speaking at his first Labour conference speech as chancellor, he told members it is not progressive “to allow a bigger and bigger benefits” bill.
He was later clearer in an interview with ITN, stating, “We have to bring the benefits bill down. I made the case that as a moral case, not just an economic case, that we can’t have a bigger and bigger benefits bill. We can’t have a system that offers payments and no help.”
He added, “The best thing, especially for young people who at the moment are too often locked out of any future, the best thing we can offer is not a benefits payment, but a first job with a wage and with a future.”
His speech was met with approval from Labour members, many of whom had previously been sceptical about the party’s attempts to curtail welfare with £5 billion of cuts.
Mr Healey, who laid out his credentials as a Labour politician from his roots in the miners’ strike in the 1980s to the Treasury under Andy Burnham, made it clear he shared the values of the audience in Liverpool.
“Conference, it is not progressive to allow a bigger and bigger benefits bill, and a system which offers an income but doesn’t offer a future,” he said. “So once again, as a Labour government, it falls to us to act. And this is more than just an economic must. This is a moral duty.”
He also remarked, “I refuse to write off a million young people like the Tories have done.”
As part of this initiative, he announced a £100 million boost to local apprenticeship services aimed at getting Britain’s NEETs (Not in Employment, Education or Training) into jobs.
“Our social security system must always be there for those who can never work,” he continued. “But for everyone else, benefits should be a bridge to work, to wider participation, to a better life, not a trap that people can’t escape.”
Treasury sources described the speech as Mr Healey’s effort to “make a moral case for welfare reform in a way that brings the party with them.”
Previous attempts by Sir Keir Starmer and Rachel Reeves to introduce welfare reforms faced significant opposition in June 2025. However, sources indicated a “really positive response from the hall” during Mr Healey’s address, suggesting a shift in the party’s momentum.
He announced that mayors would receive £100 million to fund a new scheme aimed at getting young people into apprenticeships, likening the teams’ efforts to that of “football scouts” connecting youth with firms.
Ministers acknowledged the need to revisit cuts to the welfare bill that had previously derailed the government’s agenda but were optimistic that “better presentation” from Mr Healey and the Prime Minister would allow for more effective communication of these reforms.
Mr Healey summarized his vision, stating, “The best thing we can offer a young person isn’t a benefit payment, it’s a first job with training and a wage.”
He described the new service as a “down payment” on broader efforts to assist young people, following the work of former Cabinet Minister Alan Milburn.
The chancellor’s speech unveiled his economic vision for the country and included a pledge for a “new age of industrialisation” for Britain, highlighted by Rolls-Royce’s announcement of a £300 million investment in factories across several cities.
He assured the public that his first Budget next month would maintain the party’s commitment to fiscal discipline, while also providing “breathing space” and promoting “good growth and jobs in more places.”
However, he cautioned that the UK faced more straitened times compared to his earlier tenure under Gordon Brown, attributing the current debt burden to the Conservatives. The ongoing challenges reflect the complexities facing the government as it navigates both welfare reform and economic recovery.
