BACK TO WORK
Millions of unemployed Brits will LOSE benefits if they refuse jobs & training – how will you be affected?
Economic inactivity has also soared to more than nine million, with 2.8 million people out of work due to long-term sickness
MILLIONS of Brits will lose their benefits if they refuse to take up work and training opportunities under Labour's welfare shake-up.
Ministers have today unveiled a £240million plan to tackle unemployment and spiralling levels of economic inactivity.
3
3
3
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 per cent from its current level of around 75 per cent, which would mean around two million more people in work.
The Get Britain Working White Paper includes a shake-up of Jobcentres, transforming them into a National Jobs and Careers Service offering tailored support to help people find and keep jobs.
Mental health services will get a boost, and extra NHS capacity will be deployed to tackle waiting lists in areas with high inactivity.
READ MORE ON POLITICS
A £40million Growth and Skills Levy will also be introduced to make the Apprenticeship Levy more flexible, opening up better education and training opportunities for young people.
And a Youth Guarantee will offer access to education, training, and employment opportunities to under-22s.
Welfare Secretary Liz Kendall made clear this weekend those who refuse to take up the offer will be stripped of their handouts.
But jobseekers who repeatedly fail to engage can already be sanctioned, and how exactly the carrot and stick will work won’t be set out until the Spring.
Most read in Money
Ms 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."
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity works out what you could get.
Entitledto's determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto's data.
You can use to determine which benefits you could receive and how much cash you'll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
Shadow Work and Pensions Secretary Helen Whately accused ministers of having had “dodged the difficult decisions” on sickness benefits and that the announcement was “nothing more than rearranging the deckchairs on the Titanic”.
She 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.”
Rachel Reeves' Budget last month contained almost no measures on welfare, with ministers promising more detail in today's White Paper.
The Chancellor only said Labour would stick to the Tories' plans to reduce the welfare bill by £3 billion over five years.
Under the previous government, welfare eligibility would have been tightened so around 400,000 more people signed off long-term would be assessed as needing to prepare for work by 2028/29 to deliver the savings.
But in Labour's back-to-work plan, ministers only pledged to launch a consultation on “measures to overhaul the health and disability benefits system” in spring.
Sir Keir said the white paper 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.
“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,” he said.
“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.”
How Will Today's Changes Affect You?
Benefit System: Upcoming consultations will reshape health and disability benefits. Under Tory plans, welfare eligibility would have been tightened so around 400,000 more people signed off long-term would be assessed as needing to prepare for work by 2028/29 to deliver the savings. Labour said it will bring forward it own reforms in the Spring.
Young People: Every 18-21-year-old will have access to an apprenticeship, quality training, or education under the new Youth Guarantee.
Mental Health Support: There will be more mental health staff and expanded therapies, helping those struggling to return to work.
Jobseekers: Jobcentres will be transformed into a modern National Jobs and Careers Service, focusing on skills and career development instead of just benefit claims.
Digital Access: New digital tools, including AI, will make job searching and accessing support faster and easier.
Employers: An independent review will help businesses hire and retain employees with disabilities or health conditions, promoting inclusivity.
Local Communities: Mayors and councils will have funding to create tailored employment and skills programs to address specific regional needs.
Long-Term Illness: More NHS resources in high-need areas will tackle waiting lists and improve support for those with long-term health issues.
Apprenticeships: A revamped levy will create shorter, more flexible apprenticeship options in key industries.
Youth in Risk Areas: Targeted trailblazers will match at-risk young people with training or job opportunities in regions like Liverpool and Tees Valley.
READ MORE SUN STORIES
Topics