Cutting welfare costs will need higher spending elsewhere, Burnham claims

Cutting the costs of welfare will require the Government to spend more in other areas, like education, Andy Burnham has suggested.

The Prime Minister is awaiting the outcome of a major review which will recommend how to reduce the number of young people not in education, employment or training (Neets) who are claiming benefits.

As he visited an employer in Wiltshire on Friday, Mr Burnham was asked how his plans to give young people more career support tallied up with the need for departments across Government to slash their budgets in light of pledges to hike defence funding.

“It is going to be difficult. I’m not going to pretend otherwise, but we will reprioritise, and we will find funding to build our response to the Milburn review,” the Prime Minister told Times Radio.

He added: “Of course, in time, the savings will come, and there will be a crossover point, but there will be a need to invest up front in young people. But it’s an investment in society. It’s the right investment to make.”

Asked by the broadcaster whether he accepted the welfare bill would have to go up before it comes down, Mr Burnham replied: “It wouldn’t be the welfare bill. It would be the investment in the support that teenagers need and the guarantees that I want to put in place for them.

“I would like young people to have, in this country, a guarantee of a 45-day work placement between 16 and 18. I have seen the change that they have made. They’re linked to T-levels at the moment. I think they should be available to all young people who want a quality work placement of that kind.”

Speaking to the BBC, the Prime Minister was pressed for a timeline of when he hopes to see the welfare bill come down.

Both he and Chancellor John Healey have come under scrutiny in the wake of the Budget for signalling they would like to see it reduced, but not committing to whether this would be before a general election.

Mr Burnham told the BBC welfare spending could come down “in time” as a result of spending more on support for Neets.

Pressed on whether this would be before an election, he said: “You do it in a way that’s sustainable though. And if it could be this parliament, as soon as possible is the thing I would say to you, would want to see that change, that balance shift as quickly as possible.”

Ministers are expected to lay out their response to the Timms review, into disability benefits reform, and the Milburn review on getting more Neets into work in the coming weeks.

The Government is grappling with how to keep the ballooning welfare bill under control.

The Office for Budget Responsibility forecasts it will rise to £431 billion by the 2031-32 financial year, largely driven by health-related and pensioner benefits.

More than half of all welfare spending on the Government’s books goes towards pensioners, including the state pension and other benefits.