Reform UK has pledged a sweeping overhaul of the UK’s welfare and tax system, warning that the country is facing a “benefits bomb” that threatens to push public finances to the brink.
Speaking at a press event in London, former Communities Secretary Robert Jenrick outlined the party’s plans for “historic tax changes” aimed at incentivising work and reducing dependency on state support.
The announcement comes as Reform UK highlights alarming statistics showing that benefits spending has reached record levels, placing increasing pressure on the Treasury.
We are on the verge of a public finance crisis,” Jenrick said.
“Our nation cannot sustain the current trajectory of welfare spending. Reform UK’s plan will put hard-earned money back in the pockets of taxpayers, while ensuring that those who can work are supported to do so.
Defusing the ‘Benefits Bomb’
Reform UK warns that decades of Labour and Conservative policies have created a system where millions rely on state benefits, with some households locked into long-term dependency. The party argues that unless significant reforms are enacted, the UK faces both economic stagnation and growing social inequality.
Jenrick emphasised that the party’s proposals are designed not to punish the vulnerable but to “defuse the benefits bomb”, ensuring that the system encourages employment, personal responsibility, and economic growth.
Historic tax reforms on the table
Details of the tax changes are expected to be unveiled over the coming weeks, but Reform UK indicates they will include:
- Targeted reductions in income tax and National Insurance contributions for low- and middle-income earners.
- Reforms to welfare and housing benefits to better align support with incentives to work.
- Streamlining the benefits system to reduce bureaucracy and prevent long-term dependency.
Jenrick described the proposed reforms as “the most ambitious tax overhaul in a generation”, aimed at creating a system that rewards work, drives investment, and strengthens public finances.
A warning on public finances
The party’s warning comes amid growing concerns from economists and think tanks that rising welfare spending, combined with other pressures such as energy costs and inflation, could leave the government facing a multi-billion-pound shortfall. Reform UK argues that urgent action is required to prevent what it calls a looming fiscal crisis.
“If we fail to act, the next generation will inherit a country weighed down by debt and dependency,” Jenrick said. “We must take bold steps now to protect taxpayers, support families, and create real opportunities for work and prosperity.”
Political reactions
The announcement is likely to intensify debate over the future of the welfare state. Labour and Liberal Democrat figures have previously defended existing benefits policies, arguing that they protect vulnerable households and maintain social cohesion. Critics of Reform UK’s proposals, however, claim that sweeping cuts and restructuring could disproportionately affect those in need.
Jenrick dismissed these concerns, insisting that the reforms are “fair, responsible, and long overdue”, and that Reform UK’s approach balances fiscal responsibility with support for those genuinely in need.
Looking ahead
As the next general election approaches, the issue of welfare reform and public spending is expected to dominate political discourse. Reform UK’s promise to implement historic tax changes and tackle what it calls the “benefits bomb” signals a major shift in the party’s economic messaging and a focus on long-term fiscal sustainability.
With public debt and welfare costs under scrutiny, all eyes will be on the government to see whether these proposals gain traction, or whether the UK continues along a path that Reform UK warns is unsustainable.
