PM under mounting pressure to deal with worklessness crisis - as it's revealed nearly 10 million Brits are out of work

14 August 2024, 01:19

Keir Starmer is facing mounting pressure to deal with the worklessness crisis after figures showed that 9.4 million Brits are neither working or looking for work.

The number of people classed as "economically inactive" reached 9.4 million in the three months to June, according to the Office for National Statistics.

The figure represents more than a fifth of the working-age population, including near-record numbers of people being signed off with long-term sickness - which stood at 2.803 million.

With employers unable to find staff, it makes it harder for the economy to grow.

Chancellor Rachel Reeves said on Tuesday that she would take action in her autumn Budget, adding: "If you can work, you should work."

But the Tories have since warned that Labour's fresh workers’ rights plan could undermine their efforts "by making it harder and more expensive for firms to employ people".

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"Today’s figures show there is more to do in supporting people into employment because if you can work, you should work," Ms Reeves said on Tuesday.

"This will be part of my Budget later in the year where I will be making difficult decisions on spending, welfare and tax to fix the foundations of our economy."

Work and Pensions Secretary Liz Kendall acknowledged that the situation was "dire" but said the previous government were responsible due to millions of people being "denied the support they need to get work and get on at work".

However, shadow business secretary Kevin Hollinrake said: "Labour talks a good game on getting more people into work, but their own business agenda will deliver the exact opposite."

He said the government's workers’ rights plan would "tie business up in red tape".

It comes after the Tories announced plans earlier in the year to overhaul disability benefits, meaning people with "mild" mental health problems would be told to get therapy and return to work.

Meanwhile, Labour’s workers’ rights programme is intended to "make work pay" in a bid to ban "exploitative practices" and "enhance" employment rights.

It will give staff the right to work from home, access to sick pay and protection from unfair dismissal.

Zero-hour contracts and "fire and rehire" will also be banned, giving workers "a right to a contract that reflects the number of hours they regularly work".

Alexandra Hall-Chen, from the Institute of Directors (IoD), said: "The Government will need to proceed carefully over the introduction of the Employment Rights Bill to ensure that it does not add further burden for employers."

Meanwhile, James Cockett at the Chartered Institute of Personnel and Development, said ministers must consult business to ensure changes "don’t undermine the flexibility of the labour market".