'Britain fast becoming a welfare state with an economy attached'

Budget tax raid. Tory leader Kemi Badenoch blasted the PM, saying: "Britain is fast becoming a welfare state with an economy attached. Yet Keir Starmer binned Labour's only attempt at welfare savings, because he is too weak to stand up to his MPs.

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"Instead of tax rises at the Budget this month, Rachel Reeves should be cutting government spending by bringing down the benefits bill.

"Only the Conservatives have the backbone and fully costed plans to cut spending, so that our welfare system looks after the most vulnerable in society rather than those who choose not to work. I am determined to get Britain working again."

Government figures show the number of Universal Credit claimants with no requirement to look for a job rose to 4.03 million in October. This is up from 3.9 million in September and 50% above the 2.7 million level in July 2024, when Labour came into power.

The Government blames a large share of the rise on people being moved off a range of legacy benefits and on to UC.

But it still represents a massive blow to the Chancellor, who was forced to shelve key parts of her welfare reforms after a backbench rebellion.

She is struggling to get the incapacity and disability benefits bill down, with official projections showing the cost is on course to hit £100billion a year by the end of the decade.

The figures also showed the number of foreigners claiming UC is at a record 1.24 million, with EU citizens with settled status accounting for the largest share.