The Policy Exchange has published this major report: ‘Beyond Our Means’, spelling out the need to cut the UK budget deficit (£130bn in 2024) and outlining a fiscal reform package targeting over £130 billion in savings.
| Policy Area | Summary of Proposed Reform | Estimated Savings |
| State Pension Reform | Freeze pension for 3 years; raise age to 69 by 2035 and 70 by 2040 | £22.5bn (long-term >£20bn/yr) |
| Means-Test Pensioner Benefits | Restrict free benefits to pension credit recipients; align age eligibility with pension age | £3.4bn |
| Welfare | Freeze working-age benefits for 3 years; tighten eligibility to pre-pandemic levels | £30bn |
| Healthcare and NHS | Charge for GP visits and premium hospital stays; shift to social insurance model | £11bn |
| Civil Service Costs | Cut admin costs by 25%; reduce staff and merge arm’s length bodies | £2bn |
| Public Sector Pensions | Move to defined contribution schemes from 2031; standard 10% employer rate | N/A (long-term £22bn/yr) |
| Green Subsidies | End GB Energy, EV and boiler subsidies; slow Net Zero rollout | £6bn |
| International Development | Cut aid to 0.1% of GDP; focus on disaster relief and global disease control | £7bn |
| Universal Infant Free School Meals | End universal entitlement; restrict to low-income families | £0.7bn |
| Post-18 Education | Cut university places by 30%; reinvest half into further education/apprenticeships | £1.4bn |
| Childcare | Replace free scheme with vouchers; deregulate settings; launch £1bn Sure Start | £4.8bn |
| Special Educational Needs and Disability (SEND) | Restrict EHCPs to special schools; shift to budget-led model | £6.2bn |
| Small Boats and Asylum | Halve asylum hotel costs via stricter measures | £3bn |
| Housing Benefit | Tighten eligibility; lower LHA rates; boost housebuilding | £11bn |
| Barnett Consequentials | Apply devolved savings to areas like childcare, SEND, NHS, etc. | £5.8bn |
| Total | £130bn |