The UK government has announced plans to deploy 1,000 work coaches to assist the long-term unemployed in re-entering the workforce. This initiative comes as the nation grapples with a surge in economic inactivity, with 9.3 million people aged 16 to 64 categorized as economically inactive as of January. This figure has increased by 713,000 since the onset of the pandemic, largely due to long-term sickness affecting 2.8 million individuals.
In an effort to address the burgeoning costs associated with sickness benefits, which amounted to £65 billion last year, the government has outlined its intention to implement spending cuts. This decision comes ahead of the Spring Statement, with Chancellor Rachel Reeves earmarking several billion pounds in draft spending reductions targeting welfare and other government departments.
Labour MP Sir Keir Starmer has expressed strong criticism of the current benefits system, labeling it as unsustainable, indefensible, and unfair. He emphasized the importance of creating a system that incentivizes work while providing a safety net for those truly in need.
"That's unsustainable, it's indefensible and it is unfair, people feel that in their bones." – Sir Keir Starmer
The Department of Work and Pensions reports that 2.8 million people remain economically inactive due to long-term sickness. To combat this issue, a group of 36 Labour MPs has formed the Get Britain Working initiative. This group advocates for the government's moral duty to assist long-term sick and disabled individuals in finding employment if they are able.
"If you can work, we will make work pay – if you need help, that safety net will be there for you." – Sir Keir Starmer
The potential cutbacks include benefits such as the Personal Independence Payment—designed to aid individuals in maintaining independence. Charities warn that reducing such benefits could inadvertently increase costs by undermining the support system necessary for maintaining independence for many.
Neil Duncan-Jordan has also voiced concerns regarding potential cuts to benefits. He notes that if such measures lead to impoverishing vulnerable populations, there will be significant opposition within Parliament.
"If we are going to make poor people poorer then there will be a number of MPs who won't be able to sign up to that." – Neil Duncan-Jordan
Sir Keir Starmer further critiques the inefficiencies within the current system, arguing it creates adverse incentives that discourage workforce participation while simultaneously burdening taxpayers with escalating costs.
"We've found ourselves in a worst of all worlds situation – with the wrong incentives – discouraging people from working, the taxpayer funding a spiralling bill." – Sir Keir Starmer
The Get Britain Working group underscores the critical nature of this issue, highlighting the presence of one-in-eight young people who are neither in education, employment, nor training. This demographic is at risk of becoming a "wasted generation" if not addressed promptly.
"A wasted generation, one-in-eight young people not in education, employment or training, and the people who really need that safety net still not always getting the dignity they deserve." – Sir Keir Starmer