Former Chancellor George Osborne has warned that Kemi Badenoch will face strong resistance from rightwing Tories if she pushes for sweeping welfare cuts. Source: independent.co.uk.
Osborne’s Experience as Chancellor
From 2010 to 2016, George Osborne served as Chancellor and tried to limit welfare spending through policies like a benefits cap and cuts to tax credits and sickness benefits.
He said the main opposition to these reforms came not from Labour or the left — where he was open to debate — but from within his own party’s right wing.
- Boris Johnson was the biggest opponent of the benefits cap, arguing it would harm low-income families.
- Iain Duncan Smith resigned from cabinet over his opposition to limiting sickness benefits.
- Nigel Lawson blocked efforts to cut tax credits, saying such cuts would discourage work and damage public trust.
All three were aligned with the Leave campaign in 2016, when Osborne led the Remain side. Their shared belief in reduced public spending shaped their resistance to welfare reform.
Badenoch’s Welfare Proposals
Kemi Badenoch’s plan includes:
- Restoring the two-child benefit limit to save £3.1bn.
- Ending benefits for non-UK nationals to save £9.5bn.
- Overhauling sickness and disability benefits to save up to £13bn.
- Introducing a subsistence allowance for long-term unemployed Universal Credit claimants to save £0.5bn.
- Ending VAT relief on Motability vehicles to save £1bn.
Osborne said these measures are sensible and reflect fiscal responsibility. But he stressed that welfare spending has grown under recent Conservative governments.
Welfare Spending Under Conservative Governments
The number of young people accessing benefits rose sharply under Boris Johnson and Rishi Sunak.
Osborne said the pandemic had a major impact, but the rise in young people on benefits began under Conservative leadership. This shift reflects deeper changes in how benefits are accessed and designed.
He noted that the right-wing press was often critical of his reforms, calling them attacks on the working poor or threats to social stability.
Key Challenge for Badenoch
Osborne warned that Badenoch’s main opposition won’t come from Labour or the left — it will come from within the Conservative Party.
To succeed, she must build a coalition of Conservative members before challenging the party’s right wing.
He said welfare reform is not just about spending. It’s shaped by party ideology, media narratives, and past decisions. The real challenge is to reframe the debate to win broader support.
His remarks come just days before John Healey delivers his first Budget as Chancellor. The conversation took place on the Political Currency podcast with Ed Balls.
Osborne’s insights highlight a deep divide in the Conservative Party: the balance between fiscal restraint and social protection.
Sources & further reading
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