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Liz Kendall has announced wide-ranging reforms designed to tackle economic inactivity in the UK and warned that “under this Labour government, if you can work, you must work”.
The work and pensions secretary told MPs that the Get Britain Working white paper will bring forward “the biggest reforms to employment support in a generation”.
Ms Kendall said the UK was experiencing “an economic, but above all, social crisis” and that the paid for in the life chances “benefits bill for sickness and disability that is set to rise by £26bn by the end of this Parliament”.
She said the Tories had failed “to create good jobs” or deliver on the NHS and reform welfare.
Tory counterpart Helen Whately defended the previous Conservative government and said they “drove down unemployment and economic inactivity year after year”.
Earlier today, employment minister Alison McGovern said that some benefits claimants are “stealing from the state”.
Ms McGovern was on the media round discussing the government’s plans and said nobody should be claiming sickness benefit if they are not unwell.
She told Sky: “Unfortunately, people have stolen from the state, and we’re bringing forward proposals to deal with that.”
Tory shadow minister defends previous government’s record on welfare
Shadow work and pensions secretary Helen Whately said Liz Kendall has “dodged tough decisions” on welfare as she defended the previous Tory government’s record on employment and welfare.
Ms Whately said the new Labour administration was “rebranding” some of their ideas, also telling the Commons: “Economic inactivity is a problem for our economy and for each and every individual who risks being written off to a life on benefits.
“Knowing that, I am disappointed in the substance of what she is announcing today because far from matching her rhetoric, this appears to be little more than a pot of money for local councils, some disparaging language about the work of Job Centres and a consultation which will be launched in the spring. Given that they’ve had 14 years to prepare for this moment, is that it?
“Where are the reforms to benefits that would actually make material savings to the taxpayer, like the £12 billion we committed to save in our manifesto? Where are the reforms to fit notes, which we had handed over all ready to go? Where is her plan for reforming the workplace capability assessment?”
She added: “The fact is the Secretary of State has dodged tough decisions. Every day she kicks the can down the road costs the taxpayer millions of pounds, at this rate rising to £100 billion on sickness benefits by the end of this Parliament.”
Ms Kendall, in her reply, said: “The only people who dodged difficult decisions on welfare were the party opposite.”
From Jobcentres to disability benefits: Labour’s DWP changes explained
Labour announced a sweeping range of employment reforms on Tuesday, labelled the “biggest in a generation.” Prime minister Keir Starmer says the plans will tackle “the biggest drivers of unemployment and inactivity,” promising to “unlock growth and make people better off.”
Chief among the measures is a plan “overhaul” Department for Work and Pensions (DWP) Jobcentres, guarantee opportunites for young people, and prevent long-term sickness through NHS funding.
The government promises that the changes will mark a move away from the ‘tick box’ culture of the past and allow for a more personalised service for jobseekers.
The measures come as part of Labour’s ‘Get Britain Working Again’ white paper, published on Tuesday by work and pensions secretary Liz Kendall.
Albert Toth reports
‘New plan to drive down economic inactivity’ – Kendall
The final major reform announced by Ms Kendall is the plan to drive down economic inactivity due to ill health.
She said: “The health secretary (Wes Streeting) is already taking action to get people back to health and back to work with extra support to drive down waiting lists in the 20 NHS Trusts with the highest levels of economic activity”.
‘New youth guarantee’ – Kendall
The work and pensions secretary said the second major reform is the new youth guarantee.
It will “bring together all the support for 18 to 21 year olds under the leadership of majors and local areas” so that all young people have access to training and education.
‘If you can work you must work’ – Kendall
Ms Kendall thunders that “under this Labour government, if you can work, you must work”.
Unveiling a Youth Guarantee, Ms Kendall told the Commons: “This comes alongside our commitment to provide mental health support in every school, our work experience and careers advice offer, and our plans to reform the last government’s failed apprenticeship levy to give more young people the opportunities they deserve.
“But our new Youth Guarantee will go further, bringing together all the support for 18 to 21-year-olds under the leadership of mayors and local areas so all young people have access to education, training and employment opportunities, and so that no young person misses out.”
The minister announced eight Youth Guarantee “trailblazers” in the Liverpool City Region, West Midlands, Tees Valley, East Midlands, Cambridgeshire and Peterborough, West of England, and two areas in Greater London, backed by £45 million.
She continued: “I can also announce a new national partnership to provide exciting opportunities for young people in sports, arts and culture, starting with some of Britain’s most iconic cultural and sporting organisations including the Premier League, the Royal Shakespeare Company, and Channel 4, building on the brilliant work they already do to inspire and engage the younger generation and get them on the pathway to success.”
Ms Kendall later said: “In return for these new opportunities, you have a responsibility to take them up, because being unemployed or lacking basic qualifications when you’re young can harm your job prospects and wages for the rest of your life, and that is not good enough for young people or for our country.”
‘Benefits bill to rise by 26bn by end of Parliament’ – Kendall
Ms Kendall said the “benefits bill for sickness and disability is set to rise by £26bn by the end of this Parliament.
She said the Tories have failed “to create good jobs” or deliver on the NHS or reform welfare.
‘Fundamental reform is needed’ – Kendall
Ms Kendall told MPs that “nothing short of fundamental reform” is needed and that the employment rate has not returned to pre-pandemic levels, unlike our G7 counterparts.
She said a near 2.8 million people are out of work on long term sickness and almost 1 million young people not in education, employment or training.
Liz Kendall is here
The work and pensions secretary is now announcing the wide-ranging reforms designed to tackle economic inactivity and deliver the government’s promise to bring more than two million people back into work.
Irish leader’s gaffe blows election wide open and leaves Starmer facing Brexit reset setback
Sir Keir Starmer risks a blow to his pledge to reset relations with the European Union after Brexit amid fears one of his key allies could be ousted in Friday’s elections in Ireland.
The Labour prime minister has built a strong personal rapport with the Irish leader Simon Harris since his election in July.
But a new poll for the Irish Times suggests Mr Harris’ Fine Gael has slumped from first to third place – after a gaffe which has been compared to Gordon Brown’s 2010 ‘bigoted woman’ comments.
Kate Devlin reports
Greater powers to be given to local mayors under Labour work plan
Working with the 12 metro mayors, Labour has pledged to invest £15 million and devolve power to local areas to create work plans tailored to local needs.
The government says this will deliver “real employment opportunities for people who know their communities best.” Liverpool Mayor Steve Rotheram said: “Devolution is already making a huge difference to people’s lives in the Liverpool City Region.
“We’ve helped thousands of people into work, created opportunities for young people through apprenticeships, and supported adults to gain the skills they need to thrive.
“That’s why I welcome the government’s plans to give Mayors more of the tools and resources we need to break down the barriers keeping people out of work.”
