'Britain isn't working' Starmer says, as he vows to help people into 'decent' jobs amid spiralling benefits list

26 November 2024, 05:57 | Updated: 26 November 2024, 06:07

Keir Starmer has admitted that "Britain isn't working" as he looked to help people into "decent" jobs after the list of people who don't contribute to the economy soared.

The Prime Minister said he wanted to end a culture of shaming and blaming people for not being in work, but instead find them meaningful employment for which they are well suited.

Labour unveiled a raft of reforms aimed at achieving this on Monday night, including replacing Jobcentres with a more tailored service and efforts to improve people's physical and mental health.

While unemployment stands at almost 1.5 million, economic inactivity has also soared to more than nine million, with 2.8 million people out of work due to long-term sickness - a major driver of the rise in joblessness since the pandemic.

During the election, Labour promised to increase the employment rate to 80% from its current level of around 75%, which would mean around two million more people in work.

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Tackling economic inactivity, which has risen by 600,000 people since the pandemic, is seen as vital to both boosting economic growth and reducing a spiralling welfare bill that threatens to demand more resources from the Treasury.

Sir Keir said: "From the broken NHS, flatlining economy, and the millions of people left unemployed and trapped in an inactivity spiral - this Government inherited a country that simply isn't working.

"But today we've set out a plan to fix this. A plan that tackles the biggest drivers of unemployment and inactivity and gives young people their future back through real, meaningful change instead of empty rhetoric and sticking plaster politics."

Sir Keir added that the Government's reforms would "put an end to the culture of blaming and shaming people who for too long haven't been getting the support they need to get back to work" and help people into "decent, well-paid jobs".

As well as providing extra capacity to cut waiting lists at the 20 NHS trusts with the highest levels of economic inactivity, the government's plans will see an expansion of mental health support and efforts to tackle obesity.

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Alongside the focus on improving health, the Government's plans will see Jobcentres replaced by a new National Jobs and Careers Service.

Backed by £55 million, the new system is expected to have a greater focus on helping people back into work rather than monitoring benefit claims.

Other policies include providing additional employment and training opportunities for young people and extra powers for mayors to develop their own employment plans.

But the plan does not include a major crackdown on the spiralling benefits bill, as some had hoped for - and the Tories said the move was "nothing more than rearranging the deckchairs on the Titanic".

Work and Pensions Secretary Liz Kendall said: "To get Britain growing, we need to get Britain working again. Our reforms will break down barriers to opportunity, help people to get into work and on at work, allow local leaders to boost jobs and growth, and give our children and young people the best opportunities to get on in life.

"The Get Britain Working White Paper shows that this Government stands unashamedly for work. We will make sure everyone, regardless of their background, age, ethnicity, health, disability or postcode can benefit from the dignity and purpose work can bring."

But Ms Kendall also made clear that the Government expected those who were able to work to take up opportunities.

Referring to the policies of the last Labour government, she told broadcasters on a visit to Peterborough: "We said there was no option of a life on benefits, and that principle remains the same today."

The plans were welcomed by the Chartered Institute for Personal Development, whose CEO Peter Cheese said they were "a step in the right direction" but called for "more ambition" to "make apprenticeships a viable alternative to university".

Disability charity Scope also welcomed the announcement as "a positive vision for supporting disabled people into work", but warned a "lack of trust" in the Department for Work and Pensions could "seriously undermine" the plan.

Louise Rubin, Scope's head of policy, said: "We know that disabled people fear being forced into unsuitable jobs, or losing benefits if they engage with employment services.

"The Government must remove these risks, and work with disabled people to transform employment support and fix our broken benefits system."

Richard Kramer, chief executive at the national disability charity Sense, said that the focused approach to support disabled jobseekers into employment was welcome, but that a lot will need to be done to build trust.

He said: "Disabled people must not be left in fear that their benefits will be cut if they turn down job offers or training courses that don't meet their needs.

"There is a lot that will need to be done to rebuild trust with disabled people and to work in partnership with local experts to really deliver this change.

"It is also vital to remember that not every disabled person is able to work and no-one ever should be pressured into taking a job at the expense of their health."

Catherine Parsons, who oversees the Big Issue's specialist employability service Big Issue Recruit, said that "scare tactics" will only exacerbate Britain's work crisis.

She added: "We know that the steep rise in anxiety and mental health problems in young people has had a direct impact on their ability to find and retain good jobs.

"The new looming threat of having their benefits axed should they fail to summon the mental strength to accept work or training will only continue the vicious cycle of failure that has seen economic inactivity and the welfare bill spiralling out of control in recent years.

"Until the Government invests in ethical, empathetic, end-to-end employment support like Big Issue Recruit, any attempt to 'Get Britain Working' won't work."

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Helen Whately, the Conservatives' shadow work and pensions secretary, said: “This latest announcement shows that Labour are not prepared to take the tough but necessary choices to bring down the benefits bill.

“There is no attempt to match the £12 billion in welfare savings we promised in our manifesto. They have even dodged the difficult decisions on sickness benefits, which are needed to make the welfare system sustainable in the long term.

“To get people off benefits, you also need jobs for them to go to. But Labour’s disastrous anti-growth Budget is already making businesses think twice about taking people on.”