• Latest
  • Trending
  • All

How big is the welfare budget and where might cuts fall?

March 8, 2025

Gang guilty of organised crime in £4m cocaine and dirty money ring

June 15, 2026

Pensioner suffocated neighbour and recorded his dying words, court told

June 15, 2026

Reports nurses told by police to show ID to masked men during trouble – O'Neill

June 15, 2026

World Cup 2026: Nestory Irankunda – the refugee who quit Bayern to make Australia history

June 15, 2026

Trump and thousands of others watch UFC fight on White House lawn

June 15, 2026

South African TV star arrested after allegedly kidnapping man in girlfriend dispute

June 15, 2026

Australia demands answers after girl taken hostage is shot dead by Pakistan police

June 15, 2026

Norwegian crown princess's son found guilty of two counts of rape

June 15, 2026

US musician Oliver Tree dies in helicopter collision in Brazil

June 15, 2026

US and Iran agree deal to end war as Trump says Strait of Hormuz to reopen

June 15, 2026

'Boyfriend duties call,' Trudeau says after skipping Canada match to watch Perry

June 15, 2026

Taboo subjects on the table at women's health event

June 15, 2026
News
  • Login
  • Home
  • News
  • Sports
  • Worklife
  • Travel
  • Reel
  • Future
  • More
Monday, June 15, 2026
No Result
View All Result

NEWS

3 °c
London
8 ° Wed
9 ° Thu
11 ° Fri
13 ° Sat
  • Home
  • Video
  • World
    • All
    • Africa
    • Asia
    • Australia
    • Europe
    • Latin America
    • Middle East
    • US & Canada

    World Cup 2026: Nestory Irankunda – the refugee who quit Bayern to make Australia history

    Trump and thousands of others watch UFC fight on White House lawn

    South African TV star arrested after allegedly kidnapping man in girlfriend dispute

    Australia demands answers after girl taken hostage is shot dead by Pakistan police

    Norwegian crown princess's son found guilty of two counts of rape

    US musician Oliver Tree dies in helicopter collision in Brazil

    US and Iran agree deal to end war as Trump says Strait of Hormuz to reopen

    'Boyfriend duties call,' Trudeau says after skipping Canada match to watch Perry

    Clinical Australia upset Turkey in World Cup opener

  • UK
    • All
    • England
    • N. Ireland
    • Politics
    • Scotland
    • Wales

    Gang guilty of organised crime in £4m cocaine and dirty money ring

    Pensioner suffocated neighbour and recorded his dying words, court told

    Reports nurses told by police to show ID to masked men during trouble – O'Neill

    Starmer set to ban under-16s from major social media platforms

    Hamilton says Barcelona win beyond wildest dreams

    Sinkholes near Purley bridge halt Gatwick trains

    Glasgow race attacks a 'mark against the reputation of the city'

    Jade Jones could face Sheena Bathory after dominant second boxing win

    Days of violence 'a stain on NI's international reputation'

  • Business
    • All
    • Companies
    • Connected World
    • Economy
    • Entrepreneurship
    • Global Trade
    • Technology of Business

    Oil prices slide after Pakistan announces deal between US and Iran

    UK electric car sales target set to be weakened

    Why the US economy keeps defying the odds

    Teen plans to leave uni 'debt free' after making £35,000 selling vintage football shirts

    Beauty Pie LED mask ad banned over misleading anti-wrinkle claim

    Elon Musk becomes world's first trillionaire as SpaceX soars in stock market debut

    'I was employee number one at SpaceX'

    Reporter Reads

    Elon Musk’s SpaceX raises $75bn ahead of record stock market debut

  • Tech
  • Entertainment & Arts

    Meghan hits red carpet at Power of Women in Hollywood

    Margot Robbie unable to speak at Saltburn premiere

    Barbra Streisand: Siri can now pronounce my name

    Wes Anderson’s The Grand Budapest Hotel inspires cinema’s look

    Taylor Swift/ Travis Kelce romance reaches White House

    The Killers booed at Georgia concert after inviting Russian fan on stage

    Watch: Memorable moments from Parkinson's star-studded show

    Tom Jones: Neighbour surprised to find singer in flat below

    Black Country Folk Festival showcases local musicians

    Watch: Australians set new world record with Tina Turner dance

  • Science
  • Health
  • In Pictures
  • Reality Check
  • Have your say
  • More
    • Newsbeat
    • Long Reads

NEWS

No Result
View All Result
Home Reality Check

How big is the welfare budget and where might cuts fall?

March 8, 2025
in Reality Check
9 min read
246 7
0
492
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter


PA Chancellor Rachel Reeves gesturing with her right hand while speaking at the National Manufacturing Conference. The BBC Verify logo appears in the top left corner of the image.PA

Chancellor Rachel Reeves has earmarked “several billion pounds” in draft spending cuts to welfare ahead of her Spring Statement, according to the BBC.

When asked about the welfare budget, the Justice Secretary, Shabana Mahmood said: “Our current situation is unsustainable… we’ve seen a huge rise in that welfare budget.”

BBC Verify has examined this budget and where the cuts might fall.

How big is the welfare budget?

Before looking at where the welfare budget might be cut, it is necessary to understand the size of the budget and how it has grown.

At the time of the October 2024 Budget, the Office for Budget Responsibility (OBR) forecast that total spending on health and disability benefits would rise from £64.7bn in 2023-24 to £100.7bn in 2029-30.

And the OBR projected that the biggest contributor to this increase would be from welfare spending on working-age adults, defined as those aged between 16 and 64.

The OBR projected spending on this sector would rise from £48.5bn in 2023-24 to £75.7bn in 2029-30.

Why is the welfare bill growing?

The OBR cited rising numbers of people coming on to incapacity and disability benefits as driving its latest forecasts.

The forecaster is essentially assuming the trend of rising benefits claims in recent years will continue.

In the five years after 2009-2010, more people were coming off incapacity benefits than on.

A bar chart showing the yearly change in the number of people (in thousands) applying for incapacity benefits. Between 2010 and 2014 the net change was negative, meaning more people were coming off benefits than applying, but between 2018 and 2024 the trend has been steadily rising to about a 200,000 net increase.

But in recent years – and especially since the 2020-21 Covid pandemic – more people have been coming on to benefits than off them.

And the OBR forecast the share of the working-age population in receipt of an incapacity benefit would rise from 7% in 2024 to a record high of 7.9% in 2029.

The reasons for this are not totally clear.

Some experts point to the damaging and lasting impact of the pandemic on physical health.

Others reference the rise in mental ill health, especially among younger people.

The Office for National Statistics (ONS) has reported that the number of people aged 18 to 24 who are not in education, employment or training (Neet) rose to 907,000 at the end of last year, a 30% increase on the level before the pandemic in 2020 (although the ONS also cautioned the survey used to collect the data was potentially unreliable).

Other experts place the emphasis on financial incentives in the welfare system – where people can get higher payments for being on sickness benefits than from being unemployed or in low-paid, part-time work.

The standard allowance for a single person on Universal Credit is £311.68 per month. If someone is deemed to have “limited capacity for work-related activity”, the criteria to receive incapacity benefits, they are eligible for an extra £416.19 per month on top.

But there is no consensus on what’s causing the trend.

“It is not yet known what factors are driving this increase,” says Eduin Latimer of the Institute for Fiscal Studies.

“Figuring out what is behind the recent rise must surely be a top priority for the government if it is going to be able to respond appropriately.”

Which elements of the welfare bill might be cut?

Ministers have not said where they will seek cuts, but the largest element of the working-age welfare bill is incapacity or long-term sickness benefits – paid via Universal Credit or the legacy system of Employment and Support Allowance.

If the government wants to make significant savings from the working-age welfare bill it will probably need to find some savings here.

But the second largest single element of the working-age welfare bill is Personal Independence Payments (PIP) – a benefit for people under state pension age who need help with daily activities because of a long-term illness or disability. PIP claimants can be in work.

In 2023-24, PIP totalled £18bn and that’s projected to almost double to £34bn by 2029-30. That would mean the number of claimants rising from 2.7 million to 4.2 million.

As with the rise in the overall welfare bill, there’s no consensus among experts on what’s driving rising PIP claims, but this is also somewhere the government might well look to make some savings.

The previous Conservative government had explored making it harder for younger people with mental health conditions to claim PIP.

Can significant savings be made?

Many experts, such as the Resolution Foundation think tank and the Institute for Employment Studies, agree that more working-age people should be helped and encouraged into work, and that there is a case for reform of the working-age welfare system.

But some argue that making sustainable, long-term savings requires upfront government investment in employment support programmes – schemes which aim to help people overcome barriers to getting into work.

Analysts also warn that reducing spending on the welfare bill has been historically difficult.

At the 2015 general election, the Conservative manifesto promised to cut £12bn from the annual welfare budget.

While some significant savings were initially found, ministers were forced to change policy after a political backlash over some of the cuts.

The OBR later concluded £4bn of the £12bn a year promised cuts had not been achieved.

Additional reporting by Rob England

BBC Verify logo
Thin, red banner promoting the Politics Essential newsletter with text saying, “Get the latest political analysis and big moments, delivered straight to your inbox every weekday”. There is also an image of the Houses of Parliament.



Source link

Tags: Bigbudgetcutsfallwelfare

Related Posts

What we know about US sea drone used in helicopter crew rescue mission

June 14, 2026
0

BBC Verify examines what we know about the drone boat and how the mission took place. Source link

Three ships attacked by the US in three days: What we know

June 13, 2026
0

Three tankers have been struck by the US military over the past three days, killing at least three people....

More than 50 Iranian military bases damaged in US strikes since start of war, satellite images show

June 12, 2026
0

In addition to military bases, many civilian buildings have been hit across the country. According to the US-based Human...

  • Lee McGregor: Scot seeks world title in 2025 & Nathaniel Collins bout

    677 shares
    Share 271 Tweet 169
  • Belgian footballer arrested in cocaine investigation

    533 shares
    Share 213 Tweet 133
  • Next to raise prices to help pay for rising wage costs

    531 shares
    Share 212 Tweet 133
  • South Wales Police officers injured, one arrested

    525 shares
    Share 210 Tweet 131
  • Charities to get £15m fund to save surplus farm food

    516 shares
    Share 206 Tweet 129
  • Trending
  • Comments
  • Latest

Lee McGregor: Scot seeks world title in 2025 & Nathaniel Collins bout

January 16, 2025

Belgian footballer arrested in cocaine investigation

January 27, 2025

Next to raise prices to help pay for rising wage costs

January 7, 2025

World Cup 2022: TikTok brings football fever to millions of fans

0

UK economy will get worse before it gets better, warns chancellor

0

One of Central America’s most active volcanoes erupts again

0

Gang guilty of organised crime in £4m cocaine and dirty money ring

June 15, 2026

Pensioner suffocated neighbour and recorded his dying words, court told

June 15, 2026

Reports nurses told by police to show ID to masked men during trouble – O'Neill

June 15, 2026

Categories

Scotland

Gang guilty of organised crime in £4m cocaine and dirty money ring

June 15, 2026
0

The five men were caught during a major police investigation called Operation Silhouette. Source link

Read more

Pensioner suffocated neighbour and recorded his dying words, court told

June 15, 2026
News

© 2023 GODJ - NEWS CORP - news.godj.com.

Explore NEWS.GODJ.COM

  • Home
  • News
  • Sports
  • Worklife
  • Travel
  • Reel
  • Future
  • More

Follow Us

  • Home Main
  • Video
  • World
  • Top News
  • Business
  • Sport
  • Tech
  • UK
  • In Pictures
  • Health
  • Reality Check
  • Science
  • Entertainment & Arts
  • Login

© 2023 GODJ - NEWS CORP - news.godj.com.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.