John Healey tells Labour conference “bigger and bigger” welfare bill is “not progressive”
Healey also recommitted to the fiscal rules
A growing welfare bill is “not progressive”, the chancellor of the exchequer John Healey told Labour Party members today (28 September).
He made the comments in his keynote speech to the Labour conference in Liverpool.
Speaking to the hall, Healey said: “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.
“And, conference, it is simply not progressive to allow a bigger and bigger benefits bill, and a system which offers an income but doesn’t offer a future. So once again, as a Labour government, it falls to us to act. And this is more than a just an economic must. This is a moral duty. I refuse to write off a million young people like the Tories have done.”
Healey’s comments mirror those made by the work and pensions secretary Pat McFadden yesterday. McFadden told the conference that reforming welfare was a “moral crusade”.
With both Healey and McFadden signalling substantial reform to the welfare system is round the corner, this may well prove to be a big battleground within the Labour Party in the coming months, particularly in the run up to the budget on October 28.
Keir Starmer faced a major backbench rebellion from Labour MPs over his attempts to make changes – including substantial cuts – to disability benefits.
Elsewhere in his speech, Healey recommitted himself to the government’s fiscal rules and made the case for a ‘fiscally responsible’ approach to the economy.
He told delegates: “On day one as chancellor I said my first duty is fiscal discipline, and I’ll tell you why. It underwrites every promise this government makes on growth, on jobs, on national security and on public services. We can’t succeed without it.
“And that’s why the prime minister and I are united in meeting the fiscal rules, balancing the books with a buffer against uncertainty, controlling borrowing to bring down inflation, and reducing long term pressures on our finances, and confidence. That commitment is so important. There is nothing progressive about losing control because it’s always working people who pay for it.”
Healey also used his speech to announce a new local apprenticeship service, with £100m funding from the Department for Work and Pensions.
Chris Jarvis is head of strategy and development at Left Foot Forward
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