Britain's benefits bill is set to keep rising into the 2030s after Burnham rejects 'crude' welfare cuts

Ministers reportedly expect the 'back to work' programme to cost more than it saves on benefits each year through to 2030. Prime Minister Andy Burnham describes the 981,000 young people neither earning nor learning as 'a moral failure'. PIP claims have reached a record 4.09m. Even so, Burnham maintains he will 'bring the welfare budget down'.

Alan Milburn's youth inactivity package is reportedly set to be unveiled next spring.

The full costings will not be released until Chancellor John Healey's spending review next summer.

Milburn's upfront costs are expected to exceed the planned benefit cuts for two years.