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Treasury Avoids Pledge to Cut Welfare Spending Before Next Election

(MENAFN) The UK Treasury has challenged claims that Chancellor John Healey promised to reduce government welfare spending before the next general election.

Asked by BBC Radio 4’s Today Programme whether the benefits bill would fall before voters went to the polls, Healey replied: "There will be, there will be a reduction in the benefits bill, we'll do that in a Labour way."

However, several Treasury sources disputed the interpretation that his remarks amounted to a commitment to deliver cuts before the next election. One source suggested Healey had deliberately sought to avoid creating that impression.

The clarification indicates that ministers have not committed to reducing the overall benefits bill within the current parliamentary period.

Speaking to Today, Healey said: "I have said clearly and the prime minister has said as well, we have to bring the benefits bill down. You don't do that by crude cuts, especially when people are feeling the cost of living pressures."

The chancellor pointed to two major reports expected next month, saying they would help the government "map out the way that we need to change the system for the long run". He also said the government has "been reducing the rate of increase in the welfare bill".

Healey described the existing welfare system as "unsustainable" and said the government had a "moral duty" to support nearly one million young people who are not in employment, education or training.

He added that young people would be expected to accept opportunities for employment or training, arguing that "and that's the way we can take welfare bills down in the long term".

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