Minister denies deferring welfare decisions but gives no timetable

A government minister has denied that decisions on welfare are being deferred until the next election, after a day of conflicting signals over the benefits bill. On BBC One's Question Time, the minister said "no that's not right" when asked whether a decision on welfare was being delayed until the election. Pressed repeatedly, the minister would not say the welfare bill would be brought down in this Parliament, saying only that it would be reduced "as soon as we possibly can".

The confusion began when Chancellor John Healey appeared to suggest in a radio interview that there would be cuts in welfare before the election. ITV reported that Downing Street then said there was no timetable. ITV also reported that Prime Minister Andy Burnham said the government was working hard to cut the welfare bill as soon as possible and would do it in a Labour way, supporting people into work rather than making crude cuts.

BBC Two's Newsnight reported that Healey told Channel 4 News it was "not correct" to say there was any schedule or time limit for bringing the bill down. The programme reported that Treasury sources insisted he had not committed in the earlier interview to welfare cuts before the election. Its panel questioned whether ministers had a grip, with former first minister Arlene Foster saying: "It's all manana manana and it really isn't good enough."

Ministers are pointing to two reviews. BBC One reported that the Alan Milburn review will be followed by the Timms review of Personal Independence Payment, with proposals due by the end of the year and legislation next year. The same minister said the priority was the nearly one million young people not in education, employment or training.

ITV reported that the Office for Budget Responsibility forecasts spending on health-related benefits will soon top £100bn, and that welfare spending is projected to rise by almost £80bn over the next five years. On BBC One's Question Time, a panellist put the total welfare bill at nearly £400bn, with pensions making up almost half of it.

ITV reported that the Institute for Fiscal Studies said John Healey would need to find £17bn in 2030 to avoid real terms cuts to unprotected departments if NHS and education budgets are protected, and another £11bn to meet a defence target of 3% of GDP by 2030. It also reported that household income growth is projected at 1.4% this decade, the lowest on record.

ITV reported that last summer Labour MPs forced Keir Starmer's government to abandon proposed welfare cuts. Its correspondent said the politics of the Labour Party was pulling in the opposite direction from the economics, leaving Andy Burnham caught between a possible rebellion and the need to fund priorities such as defence.

On BBC One's Question Time, a Conservative panellist said the tax burden was at its highest since the Second World War and that the OBR had cut its growth forecast. A Reform UK panellist claimed the party had set out £50bn of annual welfare cuts. The programme also heard a small business owner say rising costs were making it harder to grow.