Britain's spending on health-related benefits could reach £100 billion by 2030, which would be almost double the country's current spending on defence.
Spending on disability benefits has risen by 40 percent in real terms since 2013 to £64.7 billion – a fifth more than the £53.9 billion spent on defense last year.
In a damning report from the House of Lords, peers warned that this figure will rise to £100.7 billion by 2030 – equivalent to three percent of GDP. Defense spending currently stands at 2.29 percent of GDP, or £64.4 billion, with the Prime Minister resisting calls to increase this share to 2.5.
Ministers were told to ensure radical reforms to the 'financially unsustainable' welfare system are the government's 'top priority'.
Today, Treasury Chief Secretary Darren Jones will draft new laws to tackle benefits fraud and recover money from the bank accounts of benefit fraudsters who refuse to pay.
He will also admit that Britain 'should have tackled public spending long ago and made a realistic assessment of how we use taxpayers' money.' This Labor government, he will say, will 'focus on driving efficiency and value for money'. extends to our approach to wellbeing.”
About 3.7 million people of working age receive health-related benefits, 1.2 million more than before the pandemic.
Spending on disability and disability benefits has risen by 40 percent in real terms to £64.7 billion since 2013 – a fifth more than the £53.9 billion spent on defense last year (file image)
Chief Secretary of the Treasury Darren Jones (pictured) will draft new laws to tackle benefits fraud and recover money from the bank accounts of benefit fraudsters who refuse to pay
Lord Bridges of Headley, chairman of the Economic Affairs Committee, said in the Lord's report: 'The health benefits system is financially unsustainable, wastes human resources and – in the words of the Employment Secretary – 'doesn't work for anyone'.
'Urgent action is needed to reform both the unemployment and healthcare benefit systems and the way they interact.
'Without a clear action plan, growing social spending will remain a key challenge for the upcoming Spending Review.'
Ministers have vowed to crack down on Britain's welfare bill to 'make savings' and ensure the money can be spent in other areas.
Work and Pensions Secretary Liz Kendall is expected to table a Green Paper on her reforms in March, which will then be consulted on before any concrete proposals are made.
Ministers have vowed to crack down on Britain's welfare bill to 'deliver savings' and ensure money can be spent in other areas
Last week Sir Keir Starmer promised he will be 'ruthless with cuts' if necessary, although some Labor MPs are concerned ministers may be going too far.
The report came amid suggestions that Labour's Strategic Defense Review could now be postponed until the autumn, despite initial plans to have it ready in the first half of 2025.
The Prime Minister has pledged to eventually increase Britain's defense spending to 2.5 percent of GDP amid threats from Russia and China, but will not give an “arbitrary date” for when that will be achieved.
He is likely to face renewed calls to speed up the process when US President Donald Trump, who has called on NATO member states to spend five percent of GDP on defense, enters the White House.
