DWP reveals huge crackdown on benefits bill and Jobcentre changes – how it could affect you

Work and Pensions Secretary Liz Kendall has published the Get Britain Working White Paper, marking Labour’s first major intervention to achieve an ambitious 80% employment rate

The Labour government has unveiled the biggest reforms to employment support for a generation.

Work and Pensions Secretary Liz Kendall on Tuesday published the Get Britain Working white paper, marking the Government’s first major intervention to achieve an ambitious 80% employment rate. It is backed by a £240million investment as the new administration vows to get millions of people back into work.

Labour’s white paper has set out a different approach to tackling high levels of people out of work by targeting the root causes of unemployment and inactivity, and better join up health skills and employment support based on the unique needs of local communities. That includes tackling ill health as the biggest driver of inactivity by fixing the NHS.

Keir Starmer has also said he will clamp down on the benefits bill by targeting fraudsters who are trying to “game the system”. The Prime Minister said he wants those who genuinely need benefits to treated “with dignity and respect” but that others need to face action for claiming benefits they don’t need.

Here’s some of your key questions answered on how the announcements could affect you.

Why have announcements been made?

Labour has vowed to take action amid stark figures showing almost one and a half million people are unemployed and a record 2.8 million people out of work due to long-term sickness. The UK remains the only G7 country that has higher levels of economic inactivity now than before the pandemic.

Young people have also been left behind with one in eight young people not in education, employment or training, and nine million adults lack the essential skills they need to get on in work.

The UK is also the only major economy that has seen its employment rate fall over the last five years, which has been largely driven by a significant rise in the number of people out of work due to long-term ill health with an outdated employment support system which is ill equipped to respond to this growing challenge.

Youth scheme – plus sanctions

Under the proposals, the government will offer a “youth guarantee scheme”. This will offer all young people in England between the ages of 18-21 access to an apprenticeship, training or education. Labour has also vowed to transform the Apprenticeship Levy in England into a more flexible Growth and Skills Levy backed by £40million to expand opportunities for young people to develop skills and get into work.

The White Paper unveils new partnerships with some of Britain’s most iconic cultural and sporting organisations, including the Premier League, Channel 4 and the Royal Shakespeare Company, who will offer work or learning opportunities to inspire and upskill the next generation.

But those who fail to take up the offers face being sanctioned. The details of the sanctions are expected to be set out in the White Paper but DWP Secretary Liz Kendall has already said it will mean those who don’t take up offers to “earn or learn” will lose their benefits.

Jobcentres to be overhauled

Labour has announced plans to overhaul Jobcentres. In England they will be brought together with the National Careers Service. This will be kickstarted by £55million of investment, to help people get into work, stay in work, build skills and progress in their career.

Ministers plan to use artificial intelligence to offer up-to-date data on jobs for those searching for work and bring Jobcentres into the 21st century”. The DWP will use the latest technologies and AI to provide up-to date information on jobs, skills and other support and to free up Work Coach time.

Testing and digital design will be carried out into next year to understand how best to bring DWP services online and make them easier to access to deliver tailored support, including CV advice and job adverts.

Staff at Jobcentres will have more flexibility to offer a more personalised service to jobseekers – moving away from the “tick box” culture. New coaching academies will also be set up to upskill jobcentre staff to better support people into work.

NHS boost for some areas

Places with the highest levels of people out of work will get extra NHS support as the Government bids to “get Britain working again”. Around 2.8 million people are out of work due to long-term sickness – a major driver of the rise in joblessness since the pandemic.

Labour has promised to provide extra capacity to cut waiting lists at the 20 NHS trusts with the highest levels of economic inactivity. In addition the plans will see an expansion of mental health support and efforts to tackle obesity.

Pledge to cut the benefits bill

Keir Starmer has said the welfare bill is “blighting our society” and has pledged to target those who “game the system”. Around £137billion is set to be spent on welfare benefits in 2024 to 2025, including £90billion to support disabled people and people with health conditions disability and £35billion for housing benefit.

The PM said “make no mistake, we will get to grips with the bulging benefits bill blighting our society”. In an article for the Mail on Sunday, Mr Starmer said the reforms will not “sow division” by describing people on benefits as “shirkers”, but would instead “treat people with dignity and respect”.

However Mr Starmer’s article vowing to clamp down on the benefits bill still caused some backlash from leftwingers, including veteran Labour MP Diane Abbott who accused Mr Starmer of “peddling the benefit scrounger mythology”.

Sickness benefits review

Labour is expected to honour a £3billion cut to the welfare bill that was promised by the Tories. Chancellor Rachel Reeves is expected to differ from the Conservatives’ plans and make her “own reforms” to be able to make the savings. The details are expected next year.

Alongside the white paper, Labour has announced an independent review will also be launched into how employers can be better supported to employ people with disabilities health conditions, and to keep them in the workplace, ensuring that more people can benefit from a sense of dignity, purpose and financial independence.

Building on these reforms, the government will bring forward measures to overhaul the health and disability benefits system so it better supports people to enter and remain in work and to tackle the spiralling benefits bill. A consultation will be published in Spring next year as part of a commitment to put the views and voices of disabled people at the heart of any policy changes that directly affect them.