Friday, August 28

WELFARE REFORM WILL MISS THE BUDGET – Government will wait until the new year before bringing forward legislation

The Prime Minister is not planning to make a major intervention on the cost of benefits in this year’s Budget and will wait until the new year before bringing forward legislation.

No 10 is still waiting on the outcome of two reviews of the welfare state by Sir Stephen Timms, the social security minister, and Alan Milburn, the former New Labour cabinet minister.

Mr Milburn’s review was intended to be published next month, but will now be delivered in October after Labour’s annual conference.

Ministers will then take time to respond to the reviews and consult on changes to benefits provision, before bringing forward legislation that will take several months to clear Parliament.

A senior government source said Mr Burnham could sort only “one big issue at a time”, and that his focus was on finding money to fill a £4.7bn black hole in the defence budget left by Sir Keir Starmer.

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