The Telegraph reports that inflation is expected to increase Britain’s benefits bill by more than £5 billion next year. Its analysis estimates that the Treasury faces a £2.2 billion welfare-budget shortfall for 2027.

The supplied text is too truncated to establish the details of the expected inheritance tax cuts or the reactions to them. It only indicates that Kemi Badenoch is expected to signal a change in inheritance tax policy.

Work and Pensions Secretary Pat McFadden urged Labour to reform welfare so it focuses more on helping young people, including disabled people, into work rather than simply providing benefits. He argued that spending on benefits greatly exceeds investment in employment support and warned MPs against defending a system that he said too often writes young people off. Louise Haigh said Labour MPs could support sustainable reductions in welfare spending, while Alan Milburn argued that work should be expected of those able to do it, with exemptions for people with the most severe conditions. Prime Minister Andy Burnham has pledged to reduce welfare spending while maintaining social security, and has suggested benefit cuts for people who refuse employment support.

Andy Burnham ruled out an early general election, saying the next vote would be in 2029 and that his priority was delivering in government. He plans to propose greater public oversight of water companies, stopping short of a commitment to renationalise them, while leaving open the possibility of taking struggling Thames Water into public ownership. Burnham blamed Brexit for weakened cooperation on Channel crossings but made no promise to end them by a set date. He also defended the timing of sanctions against Israeli settlements, rejected another Scottish independence referendum, and said he remained open to further changes to the family farm tax. He acknowledged that the increase in employers’ National Insurance had put pressure on businesses.

Andy Burnham ruled out a snap general election, saying the next vote would take place in 2029 and that his priority was delivering in office. He plans to propose greater public oversight of water companies, while leaving open the possibility of nationalising Thames Water; the government estimates renationalisation would cost more than £100 billion. Burnham blamed Brexit for weakened European cooperation on Channel crossings but offered no timetable for stopping them, and acknowledged that Labour's business national insurance increase had put pressure on employers. He also rejected another Scottish independence referendum and said he remained open to further changes to the family farm inheritance tax.

Official figures show that 52,210 people listed non-specific back pain as their main condition for Personal Independence Payment in April 2026, up 58.9% from April 2021. Claims are especially prevalent in London and have risen sharply in several wealthy Berkshire towns, while the condition accounts for a higher share of claims in constituencies with less manual work. Critics say the pattern raises concerns about verification and potential misuse; the Department for Work and Pensions says PIP is awarded according to how conditions affect daily needs and notes that caseload growth has slowed. A government review is due to recommend reforms as forecasts project substantial growth in PIP spending.

More than 52,000 people in the UK receive Personal Independence Payment with non-specific back pain listed as their main condition, up 58.9% since 2021. Claims are concentrated in London and affluent parts of Berkshire, and are proportionally higher in constituencies with less manual work. The TaxPayers' Alliance and Reform UK figures criticize the pattern as a potential sign of abuse, while the Department for Work and Pensions says PIP eligibility depends on the effect of a condition on daily needs and that reforms are under review. Forecasts cited in the report project PIP spending rising from about £26 billion in 2024 to £45 billion by 2030.

Kemi Badenoch has proposed cutting long-term unemployed claimants’ benefits by 30 percent and replacing cash payments for some recipients with prepaid cards that cannot be used for alcohol, tobacco or gambling. Under the plan, new claimants would initially receive the full rate, while later support would depend partly on their work and tax history; people receiving sickness benefits, child benefits and housing support would be excluded. The Conservatives estimate the changes would affect about 1.2 million people and save £540 million annually. Labour calls the card scheme unworkable, while Reform says it does not go far enough. The proposals come amid forecasts that UK welfare spending will rise to £407 billion within five years, while wider reforms are not expected before next year.

Kemi Badenoch says a Conservative government would replace some long-term unemployed claimants’ cash benefits with a pre-paid card restricting purchases such as alcohol, cigarettes and gambling, while reducing their payments by 30 percent. The proposed rules would link access to the full benefit rate to claimants’ work and contribution histories; people receiving sickness benefits, child-related payments and housing support would be excluded. Tory officials estimate the changes would affect about 1.2 million people and save £540 million annually, while researchers project around 350,000 people would receive the reduced allowance. Labour calls the card scheme unworkable, and Reform says it would not go far enough. The proposals come amid forecasts of sharply rising UK welfare spending and delayed reviews that could postpone other reforms until next year.

Reform UK leaders have asked Communities Secretary Angela Rayner to reimburse councils for nearly £14 million spent preparing for a local government reorganisation that she has paused. Essex County Council spent £3.5 million and Lancashire £2 million, while several other councils each incurred costs of at least £1 million. Reform representatives say local taxpayers should not bear the expense and have called for a council-by-council account of costs and binding local referendums before councils are abolished. The government says it recognises the work councils have undertaken and will consider how to support them during the next stage.