The Department for Work and Pensions announced the ambitious plans which hope to get 80% of UK adults into employment.
Labour said they will pump £240m into apprenticeship schemes, training and education programmes, as part of the Get Britain Working White Paper.
It will also use that cash to boost mental health support, which will be extended to where job inactivity is at its highest rate.
The White Paper comes as nearly one and a half million people are unemployed, with nine million ‘economically inactive’. Two million are also out of work due to long-term sickness, according to Government statistics.
To battle ill health — described by the Government as the “biggest driver of inactivity” — there will be an increase in NHS investment and staffing in a bid to cut down waiting lists for people awaiting medical help. There will be 8,500 extra mental health staff employed, who will help 140,000 more people by 2028-29.
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As well as targeting ill health, Jobcentres will be replaced in England by a National Jobs and Career Service with £55m invested to help jobseekers receive better support. The online services will be adapted to tailor help to people looking for work through more easily accessible CV advice and better-suited job adverts.
The reforms coincide with the Employment Rights Bill, which hopes to strengthen workers’ rights when they become employed with a raft of improvements including stronger statutory sick pay and better protections against unfair dismissals.
A further inclusion is a promised ‘Youth Guarantee’ to encourage 18–21-year-olds to get help for the future through an apprenticeship, training or professional support.
This involves partnerships with a range of national organisations including the Premier League, Channel 4 and the Royal Shakespeare Company to suit a range of job interests.
‘We need to get Britain working again’
Work and Pensions Secretary, Liz Kendall said: “To get Britain growing, we need to get Britain working again. Our reforms will break down barriers to opportunity, help people to get into work and on at work, allow local leaders to boost jobs and growth, and give our children and young people the best opportunities to get on in life.
“The Get Britain Working White Paper shows that this Government stands unashamedly for work. We will make sure everyone, regardless of their background, age, ethnicity, health, disability or postcode can benefit from the dignity and purpose work can bring.
“We can build a healthier, wealthier nation – driving up employment and opportunity, skills and productivity – while driving down the benefit bill.”
The announcement follows comments by Kendall who said opportunities for young people would be dependent on certain conditions, which if not met, would remove their benefits.
Speaking to Sky News, Kendall said: “If people repeatedly refuse to take up the training or work responsibilities, there will be sanctions on their benefits.
Kendall added: “I do not want an ever-increasing benefits bill spent on the cost of failure, people trapped out of work – terrible for their life chances, and paid for by the taxpayer.”
‘Trapped in an inactivity spiral’
Prime Minister Keir Starmer said: “From the broken NHS, flatlining economy, and the millions of people left unemployed and trapped in an inactivity spiral – this Government inherited a country that simply isn’t working. But today we’ve set out a plan to fix this.
“A plan that tackles the biggest drivers of unemployment and inactivity and gives young people their future back through real, meaningful change instead of empty rhetoric and sticking plaster politics.”
Starmer added: “Our reforms put an end to the culture of blaming and shaming people who for too long haven’t been getting the support they need to get back to work.
“Helping people into decent, well-paid jobs and giving our children and young people the best start in life – that’s our plan to put more money in people’s pockets, unlock growth and make people better off.”