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Rachel Reeves vows to get jobless Brits back into work as £306bn welfare bill spirals ‘out of control’
Welfare costs have increases a staggering 64 per cent since 2010
RACHEL Reeves vows to get more jobless Brits back into work as the £306 billion welfare bill spirals “out of control”.
The Chancellor will launch a crackdown on benefits spending as the workless crisis puts the brakes on the economy booming.
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Her intervention comes as 9.4 million are economically inactive – not working or looking for a job – and 2.83 million are off on long-term sickness.
Ms Reeves said: “For too long millions of people have been told they can’t work and have been forgotten about.
“It’s been 14 years of shameful failure and mismanagement by the previous government that has let welfare costs spiral out of control.”
Speaking on a trip meeting UK investors in North America she adds: “We need a new approach to get Britain working again and make sure welfare spending is sustainable.”
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“We are going to give local leaders, the people who know the area and the local job market best, more powers and responsibilities to get people into work.
“We need to get this right, because helping people get into work and stay in work will help fix the foundations of our economy to rebuild Britain and make every part of the country better off.”
Treasury officials will be tasked with looking at key issues such as health and childcare which are stopping people working and helping boost the economy.
Welfare costs have increases a staggering 64 per cent since 2010 when the bill stood at £187 billion.
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Economists predict the bill could hit £326 billion by 2028-29.
Also, the welfare cap stands at £137 billion, that covers around half of the spending including tax credits and disability benefits, is set to be missed by £7.4 billion.
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She is also concerned with ‘fraud and error’ in the benefits system that has hot around £10 billion a year and is set to grow each year.
She is also adamant that staff in Job Centres move away from a “box-ticking” approach and tackling the practical issues holding people back from clocking on.
Ms Reeves said: “We need a change of mindset in Jobcentres from the one driven by the previous government – it isn’t just about monitoring benefits, ticking a box, and offering whatever job is available.
“When people can work, they should but we need to look at the issues that are stopping people getting into work – their health, childcare, transport – all the things that make a huge impact on someone’s success in a job.”
The Chancellor will deliver her first Budget at the end of October having revealed she will have a £22 billion black hole to fill.