The new Labour government is taking a tough stance on rising unemployment in the UK. Liz Kendall, the Work and Pensions Secretary, has described current unemployment levels as “unacceptable” and proposed several measures to address the issue.
These measures include the introduction of a national jobs and careers service aimed at combating record youth unemployment and the growing number of people out of work due to long-term illness.
In her first ministerial tour, Ms Kendall will also unveil a local strategy to upskill unemployed people and address the underlying causes of unemployment.
But the Conservative Party has criticised the proposed reforms, warning of the huge financial burden on taxpayers. A Conservative Party spokesman said: “Unless action is taken, the social care bill for working-age people will rise by more than £20 billion a year by the end of the decade.”
Key proposals put forward by Ms Kendall include merging the National Employment Service with WorkPlus to streamline efforts to get more people into work and help them secure better-paid jobs. Currently, the Department for Education runs the National Employment Service, which provides careers advice, while WorkPlus, which focuses on social care applications, is under the Department for Work and Pensions.
The Labour Party’s plans also include:
New plans for work, health and skills
Targeting “economically inactive” individuals who are not looking for work or are not available for work, led by mayors and local councils.
“Youth Guarantee”Ensure that everyone aged 18 to 21 has access to training, apprenticeships or assistance in finding work to prevent early exclusion from the labour force.
“Economic sluggishness is holding Britain back,” Ms Kendall said. “It is not good news that the UK is the only G7 country where employment has not returned to pre-pandemic levels.”
According to the Office for National Statistics, around 11 million people of working age in the UK are out of work. Of these, around 1.5 million are unemployed and actively looking for work, while the rest are considered economically inactive. This latter group has grown due to early retirement, health problems and challenges with affording childcare.
The Recruitment and Employment Federation has backed the government’s proactive measures. Kate Shoesmith, deputy chief executive of the Recruitment and Employment Federation, said: “The rewards are attractive to the government if they can capitalise on the personal choices people make about whether they need and want flexible working opportunities.”
Disability equality charity Scope welcomed the government’s “positive vision” but stressed the importance of reassuring people with disabilities that they will not be forced into unsuitable jobs or lose crucial financial support.
In May, Labour criticised former prime minister Rishi Sunak for comments suggesting that claiming benefits had become a “lifestyle choice” and vowing to tackle the “sick leave” culture.
The Conservatives accused Labour on Thursday of refusing to take action to save billions of dollars from the welfare bill by the end of the next parliament.
