Andy Burnham’s First Budget Leaves Working Britons in Shock as They Never Expected What They’re Seeing

Prime Minister Andy Burnham’s first Budget is already causing debate, with critics claiming Labour is putting more focus on benefits than on helping people who work, save and pay taxes.

For years, millions of families across Britain have struggled with the rising cost of living. Food prices have gone up, energy bills remain expensive, and filling up a car costs families a significant amount of money. At the same time, many workers feel they are paying more tax while having less money left at the end of each month.

Some of those households may have hoped the new Labour government would use its first Budget to ease the pressure on working families. However, early reports suggest a large part of the government’s support will be aimed at poorer households, including many people receiving benefits.

Chancellor John Healey is expected to deliver his first Budget on October 28. Reports suggest he could announce an energy support package worth more than £1 billion to help households struggling with their gas and electricity bills.

One proposal reportedly being considered is an extension of the Warm Home Discount. The scheme currently provides a £150 reduction on electricity bills for eligible households, including some people receiving certain benefits.

There are also reports that the government could provide another £100 of support, with the cost funded through taxation rather than being added to customers’ energy bills.

Burnham has already taken action on energy costs since becoming Prime Minister. One of his early decisions was to temporarily reduce VAT on domestic electricity from 5% to zero for six months, with the measure due to remain in place until March.

However, concerns remain about what could happen to energy prices this winter. Forecasts cited by critics suggest household costs could rise sharply again in January, potentially wiping out some of the savings provided by government support.

This has led to questions about who Labour is choosing to prioritise.

Critics argue that millions of people who go to work every day, run businesses, save for their future and pay taxes are also struggling with rising costs. They believe these households should receive more direct help rather than seeing most additional support targeted at people on lower incomes or benefits.

There are also concerns about the overall size of Britain’s welfare bill.

According to figures cited in the original commentary, spending on benefits reached £329.1 billion in 2025/26, equivalent to around 10.7% of GDP and roughly £4,700 for every person in the country.

The article compares that figure with spending of around £257 billion on the NHS, £126 billion on education and £62 billion on defence.

Welfare spending is also expected to continue rising in the coming years. The article says the benefits bill increased by about £18.8 billion during the previous financial year and could reach around £408.6 billion by 2030/31, partly because of increasing spending on disability and incapacity benefits.

Supporters of additional welfare help are likely to argue that assistance is necessary because many low-income households are struggling to afford essentials such as heating, electricity, food and housing.

But critics fear taxpayers will ultimately be asked to provide more money to fund Labour’s plans. They argue that continually increasing benefits without providing enough support for workers could leave people who work hard feeling ignored.

That frustration was summed up by one taxpayer quoted in the original article, who questioned why people who are already working and paying tax should face further pressure while the government increases spending on benefits.

With the Budget approaching, attention will now turn to exactly what Healey announces and where the money will come from. For millions of working households already feeling squeezed, the biggest question will be whether there is anything in the Budget for them too.