‘Emergency’ as work-shy Brits lose country £443bn | Politics | News
Conservatives claim Chancellor Rachel Reeves is presiding over economic emergency (Image: PA)
Britain’s unemployment “emergency” means the country is losing more than £443bn a year in economic output, according to a new analysis. It is claimed that the amount lost to the economy by people not working and receiving Universal Credit is equivalent to £33,900 for every working household; this figure has increased by roughly £8,500 since Labor came to power.
Kemi Badenoch’s party has warned of an “economic emergency” as annual economic losses for unemployed claimants have risen by more than £111bn since Rachel Reeves became Chancellor.
Shadow Work and Pensions Secretary Helen Whately said: “The real cost of unemployment is lost opportunities for individuals who miss out on skills, experience and purpose.”
The Conservatives said the number of non-UC candidates had risen by more than 1.4 million since Labour’s election.
Ms Whately said the loss of output of around £34,000 per working household showed “the disaster of this failed Labor Government”, adding: “It reflects lost opportunities for individuals and lost economic activity for the country, with the damage spreading across the wider economy. Labor is killing jobs and weakening incentives to work.”
But the Department for Work and Pensions accused the Conservatives of interpreting the figures as “misleading”.
A spokesman said: “These claims are misleading. People moving from legacy benefits to Universal Credit (around 80%) accounted for the vast majority of the increase in UC last year. “This is a switch we inherited from the previous Government, alongside a system that wrote people off.
“This Government is determined to fix this. That’s why we’re removing financial incentives that encourage inactivity on Universal Credit and, as part of our wider plans to Put Britain to Work, we’ve redeployed 1,000 work coaches to help thousands of sick and disabled people who have previously been out of touch for years.”
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The Conservatives claim Labour’s shock increase in employers’ National Insurance is making it harder for young people in particular to find work. This tax increase, along with an increase in workers’ rights, is blamed on employers becoming more reluctant to hire.
Shadow Communities Secretary Sir James Cleverly claimed that “more and more people are choosing welfare at taxpayers’ expense over work”.
He said: “Last year Keir Starmer made a half-hearted attempt to trim the welfare bill by a small amount. But when his supporters threatened to rebel, he made a massive u-turn. Rather than sticking to his guns, he threw up his arms in surrender and increased welfare spending by removing the two-child benefit cap. This is not leadership.”
Sir James Cleverly claims people are choosing to live on benefits (Image: Getty Images)
The Tory warning came after official figures showed the unemployment rate was at 5.2 per cent, the highest in almost five years, and wages were rising at the lowest rate in more than five years.
The economy failed to grow in January and grew by only 0.1% in December. The Iran war and the resulting increase in energy prices are expected to increase inflation.
