24/10/2026
🚨 Iceland boss and Labour peer Lord Richard Walker has issued a strong warning to his own party, declaring: “I joined the Labour Party, not the benefits party.”
Lord Walker, who was appointed Sir Keir Starmer’s cost-of-living adviser, believes Labour must rethink its approach to welfare spending and put greater emphasis on getting people into work.
His intervention comes amid forecasts that the UK’s annual welfare bill could rise to £409 billion by 2030–31, up from around £315 billion in 2024–25.
In a paper submitted to the think tank Progress, Lord Walker argued that a strong economy and a thriving private sector are essential to funding public services.
He has called for changes to the tax system to encourage businesses to invest, expand and recruit more workers, including young people. His proposals include extending employer National Insurance relief to workers under 25 and reviewing tax measures that he believes could discourage hiring.
He has also argued that businesses investing profits back into jobs, skills and technology should receive greater tax incentives, while calling for a fundamental rethink of the size of the state.