John Healey outlines welfare reform at Labour conference
John Healey today insisted he understands his “moral duty” to get benefit claimants into jobs as pressure mounts on Labour to cut the eye-watering welfare bill, reports BritPanorama.
The Chancellor addressed party members, arguing that it is not “progressive” to spend hundreds of billions on handouts for the unemployed. He and Andy Burnham have pledged to reduce the spiralling benefits tab but have not committed to achieving a decrease before the next election.
Despite facing a record tax burden to fund welfare, the Prime Minister has avoided making “crude cuts” to the welfare budget. In his remarks, Mr Healey stated: “Our social security system must always be there for those who can never work. 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.”
He emphasised that it is not progressive to perpetuate an increasing benefits bill and a system that provides income without a future. As part of his strategy, Mr Healey announced an initiative to prevent nearly a million young people from being “written off,” presenting a jobs and skills blitz aimed at transitioning more youngsters from benefits to employment.
The Chancellor stated that welfare should facilitate access to jobs and opportunities, rather than entrench dependency on handouts. He pledged an additional £100 million for a new Local Apprenticeships Service designed to connect young people with firms seeking trainees. This programme will be implemented by mayors across England beginning in spring 2027, funded through savings at the Department for Work and Pensions.
In addition, Mr Healey announced the revival of Labour’s Union Learning Fund, allocating £15 million annually to assist workers in gaining new skills in light of advances in artificial intelligence. This initiative will support both unionised and non-unionised workers in retraining for better job prospects.
Additionally, the Chancellor unveiled £6 billion in contracts for British shipyards to build docks essential for submarines that will contribute to the UK’s nuclear deterrent. This work will be undertaken in Britain, providing jobs in shipbuilding, engineering, and the associated supply chain. Rolls-Royce will invest a further £300 million in its facilities across Derby, Bristol, Rotherham, and Glasgow.
Moreover, the National Wealth Fund is anticipated to create or support another 130,000 jobs by 2030 across sectors such as AI, technology, defence, and clean energy. Local teams throughout Britain will assist in connecting young individuals with employers, including small businesses inexperienced in hiring trainees. The apprenticeship initiative will be expanded based on a successful trial endorsed by Labour veteran Alan Milburn.
With these measures, Mr Healey aims to ensure that benefits serve as a temporary support system that aids individuals in transitioning into the workforce rather than a prolonged dependency.
With the Labour Party facing increasing scrutiny over welfare spending, the proposed reforms signal an attempt to balance fiscal responsibility with social support.
