‘Crazy’ welfare system needs reform, Labour adviser warns Government, as he says ‘force long-term sick into work’
23 July 2024, 23:57
The long-term sick must be forced to look for work in order to reduce the country’s costly welfare bill and ‘toxic’ reliance on immigration, a key Labour adviser has warned.
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Alan Milburn, who served as health secretary under Tony Blair, said fundamental reform of the ‘crazy’ welfare system is needed as he presented a report alongside Liz Kendall, the work and pensions secretary.
Mr Milburn claimed 70% of those who are economically inactive want to work but are unable to do so due to either a lack of support or requirement, The Times reports.
Data shows as many as 2.8 million people are economically inactive due to long-term sickness. Overall, 9.4 million people are neither in employment nor looking for work.
Getting these people back into work is the “only route to higher levels of economic growth”, Mr Milburn claimed.
Ms Kendall, meanwhile, acknowledged that in order to achieve long-term economic growth, Labour must ‘get Britain working’.
“There have always been conditions to look for work and consequences if you don’t, that won’t change. But I want to see a much greater focus on that upfront help and support,” Ms Kendall said alongside the former health secretary.
“I think we’ve had too much of a focus on clampdowns rather than the help and support people really need to get into work.”
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Laying out her plans, Ms Kendall said job seekers will still be obligated to engage with support, look for work, and take jobs when they are offered.
But she said more attention would also be paid to wider issues - such as health, skills, childcare and transport - that play a role in determining whether people can get work, stay in work and succeed in their work.
Labour's goal to reach an 80% employment rate would currently mean getting 2 million more people back into work, she said.
The plans include an overhaul of job centres to create a careers service that merges JobCentre Plus and the National Careers Service as well as a "youth guarantee" to offer training to 18- to 21-year-olds.
The Government will also transfer powers to local areas, in what Ms Kendall called "a fundamental shift in the balance of power and resources" to mayors and local areas to lead work, health and skills plans for the economically inactive.
Ms Kendall added: “Spiralling economic inactivity is bad for individuals, many of whom want to work, it’s bad for employers who are desperate to recruit, and it is bad for our public services.”
The work and pension secretary also criticised the language of the last Conservative government, who she claims used “divisive rhetoric”, including by labelling Brits as “scroungers”.
“It did absolutely nothing to actually get Britain working again,” she added.
Mr Milburn clakms his findings could lead to 4.5 million people going back into the workplace.
“The officially unemployed are outnumbers now six to one by people who are economically inactive, who have no engagement with job centres. This is crazy.”
“We’ve got to have a two-way street,” he added. “The state will provide more help, greater personalisation, better integration for example of health and employment support services.
“But if you’re on state benefits, and economically inactive, you have a duty to engage with those better services.”
