John Healey told Labour's conference that cutting welfare spending is both an economic necessity and a moral duty, arguing that first jobs with training are preferable to long-term benefit dependence. He announced the expansion of a Local Apprenticeships Service available to any English mayor, backed by an extra £100m reportedly funded by DWP fraud savings, with a national roll-out from March 2027. Healey defended fiscal discipline alongside Prime Minister Andy Burnham but refused to set a timeline for reducing the benefits bill, and also highlighted industrial and skills measures including a further £300m Rolls-Royce investment and plans to revive the Union Learning Fund.
Healey: Jobs, Not Benefits — Apprenticeships Expanded as Government Pledges Fiscal Discipline
John Healey and cabinet ministers from the other great offices of state gave speeches at Labour Party conference on Monday [PA Media]
Chancellor John Healey used his speech to Labour's annual conference in Liverpool to argue that reducing the welfare bill is "more than an economic must - it's a moral duty," and to set out measures aimed at helping young people into work rather than long-term benefits.
Key Announcements
Healey announced an expansion of the Local Apprenticeships Service, making it available to any mayor in England and promising a national roll-out from March 2027. The Treasury says an extra £100m will be added to the scheme, funded by savings from the Department for Work and Pensions' fraud crackdown. Local teams will work to match young people with employers, including small businesses that have not previously taken trainees.
Fiscal Discipline and the Benefits Debate
Under pressure to reduce borrowing costs ahead of next month's Budget, Healey emphasised that government promises would be "built on the rock of fiscal discipline," saying he and Prime Minister Andy Burnham are "united on meeting the fiscal rules." He rejected setting a deadline for reducing the benefits bill, telling the BBC's Newscast he "won't set a timeline" for cuts before the next election.
"The best thing we can offer a young person is not a benefit payment - it's a first job with training and a wage," Healey said.
Youth Unemployment And NEETs
Healey described young people as "digital natives, whip-smart, questioning, ambitious, brave" and warned about the one in eight 16- to 24-year-olds who are not in education, employment or training (NEETs). He argued benefits should act as a bridge into work rather than a long-term trap, and said many young people have been "signed off, written off" — a problem he said Labour would address.
John Healey visits apprentices in January 2025, when he was defence secretary [Getty Images]
Industry, Skills And Other Promises
As part of broader industrial policy, Healey said Rolls-Royce would invest a further £300m in its UK factories in Derby, Bristol, Glasgow and Rotherham. He also pledged to restore the Union Learning Fund in England to support workers to develop skills in an age of artificial intelligence, though he did not give full details on how the programme would be funded.
Questions, Criticism And Analysis
Tory shadow chancellor Andrew Griffith accused Labour of opposing cuts to what he called an "out-of-control welfare bill," claiming Labour favours "more taxes if you work and more benefits if you don't." Helen Miller, director at the Institute for Fiscal Studies, warned that strict adherence to fiscal rules alone would not be sufficient to reduce national debt quickly, and suggested cutting the benefits bill — including withdrawing some support — could be one route to lowering debt sooner.
Healey did not outline a plan for greater defence spending and declined to confirm whether the pensions triple lock will remain in Labour's next manifesto amid speculation it might be adjusted to help fund a new social care system. The government is also awaiting the final instalment of a review by former minister Alan Milburn, expected to make recommendations on NEETs.
Context: The speech blends a focus on fiscal credibility with a political pitch to re-engage young people through jobs, apprenticeships and industrial investment. Key details remain unsettled, notably the timeline for welfare reductions and the funding for some new initiatives.
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