In a speech to accountants in central London, Badenoch urged Prime Minister Sir Keir Starmer to work with the Conservatives to find billions of pounds in savings, warning that uncontrolled welfare spending risks bankrupting the economy and could force the UK to seek an International Monetary Fund (IMF) bailout.
“Britain’s standard of living is not an entitlement. It is the sum of our collective efforts,” Badenoch said. “If we want to stay wealthy, we have to produce wealth. We cannot print it.”
Conservatives Push for Welfare Cuts
Badenoch criticised Labour for ditching a £5 billion welfare reform plan earlier this year after a backbench rebellion. The Conservatives voted against Labour’s proposals at the time, claiming they did not go far enough.
The government is projected to spend £100 billion annually on sickness benefits by 2030, a figure Badenoch described as unsustainable. She said reducing benefits for people not actively seeking work must be a priority to ensure fairness for taxpayers.
“Right now, people see unfairness,” she added. “They see a lot of people not working while others are paying more and more, facing a higher cost of living, and covering the cost for those who choose not to work. That is why welfare is the starting point for reform.”
Reform UK and Labour Under Fire
Badenoch also took aim at Nigel Farage and Reform UK, accusing them of being “just as bad as all the other left-wing parties” on welfare. Farage recently pledged to scrap the two-child benefit cap, while Badenoch insists the Conservatives remain the only fiscally responsible party.
Labour dismissed Badenoch’s call for cross-party cooperation, with a spokesman describing her offer as “delusional”, claiming that “no one would want to take economic advice from the Conservatives”.
Triple Lock on Pensions in Question
Badenoch also refused to commit fully to maintaining the pension triple lock, which ensures pensions rise in line with inflation, earnings, or 2.5 per cent, whichever is highest.
The cost of maintaining the policy is expected to reach £15.5 billion annually by 2030, nearly three times higher than originally predicted when it was introduced by the Conservative-led coalition in 2011.
“The triple lock is Conservative policy,” Badenoch said. “It has been and continues to be so. But the immediate problem we need to solve right now is welfare spending.”
