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Kemi Badenoch says welfare bill is 'crushing our economy' as Tories pledge to slash £36 billion

The plan would remove 2.5 million claims and redirect some savings into mental health services and family hubs, the Conservatives said.

  • On Tuesday, Conservative Party leader Kemi Badenoch unveiled a detailed plan to cut £36 billion annually from the benefits bill, warning the welfare system is 'crushing our economy.'
  • Official figures show working-age welfare costs £180 billion annually, or around £500 million daily, which Badenoch argued exceeds Ukraine's entire GDP and creates a 'damaging dependency culture.'
  • Proposed measures include saving £13.7 billion by ending benefit claims for non-EU foreign nationals and £2.8 billion by replacing cash transfers with non-monetary support for children with mild learning difficulties.
  • Shadow Welfare Secretary Helen Whately claimed the benefits bill is 'out of control,' while The Prime Minister stated his determination to rein in spending 'in a Labour way,' avoiding 'crude cuts.'
  • Reviews led by Stephen Timms and Alan Milburn into disability benefits and youth unemployment are expected in the coming weeks, as the Tories contrast their specific proposals with Labour's ongoing strategy.
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City AM broke the news in London, United Kingdom on Monday, November 9, 2026.
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