Conservatives Promise Welfare Reforms to Cut £12 Billion in Annual Spending
The IFS think tank stated that the announcement is unlikely to alter the most recent spending forecast, as many of the proposed plans have been previously discussed.
The Conservative Party has made a commitment to overhaul the welfare system, asserting that their proposals could generate savings of £12 billion annually by 2029.
These plans involve investing in mental health treatment, implementing a targeted disability benefit system, and cracking down on welfare fraud.
Prime Minister Rishi Sunak accused Labour of lacking the courage to address this issue and allowing the welfare bill to escalate, while Labour criticized the Tories for setting an arbitrary £12 billion savings goal.
The Institute for Fiscal Studies (IFS) deemed it highly challenging for these measures to yield additional savings of £12 billion compared to the projections based on the Spring Budget.
The increase in economically inactive individuals, partly attributed to early retirements and delays in NHS treatment, has risen notably since the COVID-19 pandemic.
The Conservatives aim to reduce this figure, deeming the 40 percent surge in inactive persons unsustainable.
They pledge to lower this sum, highlighting the potential cost increase in providing benefits to working-age individuals with health conditions.
The party’s proposed actions include several initiatives that have been previously discussed by the Tories in government.
Furthermore, the Conservatives promise to enhance benefit sanction regulations, expedite the rollout of universal credit, and crack down on benefit fraudsters.
In an article featured in The Sun, Mr. Sunak pinpointed the rise in economic inactivity among young people as alarming.
He emphasized the importance of getting young individuals back to work and reducing immigration for the benefit of the nation.
In a bid to appeal to voters, Mr. Sunak framed the upcoming general election as a choice between a proactive Tory Party and a passive Labour Party that could lead to a spiraling welfare bill.
Labour, on the other hand, accused the prime minister of fueling an escalating benefits bill and criticized his recent announcement as lacking substance.
The IFS suggested that while cuts are feasible, the £12 billion savings pledge is unlikely to alter the current spending forecast substantially, as most of the proposed policies are already factored into the projections.
Tom Waters, IFS associate director, mentioned in a statement that achieving the additional £12 billion savings through these measures is highly challenging.
Overall, the £12 billion in savings by the end of the next Parliament would only offset the projected spending growth, according to the IFS.
PA Media contributed to this report.
