Local services to “get Britain working” will get a £240 million funding boost in the Budget, the Prime Minister has said.
The Government will seek to “tackle the root causes of economic inactivity”, Sir Keir Starmer said in a speech ahead of Chancellor Rachel Reeves’ first financial statement on Wednesday.
Prime Minister Sir Keir Starmer (Darren Staples/PA)
He said: “Rebuilding Britain and delivering growth will take the skills and effort of all of us.
“That’s why this Budget will also get Britain working. It will pave the way for reforms that tackle the root causes for economic inactivity and make sure that those who can work do work.
“As a Labour Government, we will always help those who cannot support themselves, but the UK is the only G7 country for whom inactivity is still higher than it was before Covid.
“And that’s not just bad for our economy, it’s also bad for all those who are locked out of opportunity.
“So the Chancellor will announce £240 million in funding to provide local services that can help people back into work and the dignity that that brings.”
Work and Pensions Secretary Liz Kendall (Ben Whitley/PA)
Labour had previously promised reforms to help the “lockdown generation” get back into employment, and ministers expected to publish a “Get Britain Working” white paper due this autumn.
When Liz Kendall took over as Work and Pensions Secretary after the July election, she said Labour’s goal to reach an 80% employment rate would mean getting two million more people back into work.
She also said powers and resources would be transferred to mayors and local areas to lead work, health and skills plans for the economically inactive.
Economic inactivity has soared by 900,000 to 2.8 million people since before Covid in 2020, with 85% of this due to those who are long-term sick, according to a report from the BCG Centre for Growth and the NHS Confederation published in September.