MINISTERS were accused last night accused of “kicking the can down the road” over failing to urgently act on the bulging benefits bill.
Senior Tories hit out saying delaying taking a decision is adding millions of pounds – with the cost set to rise to £100 billion by 2030.
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But measures announced focused on employment support with a benefits crackdown not expected to be published until next year.
The row took place in the Commons as Welfare Secretary Liz Kendall launched her “Get Britain Working” plan.
She told MPs that “under this Labour government, if you can work, you must work”.
Concerns were also raised that the effects of the Budget including a £25 billion national insurance rise to business will also hit firms trying to recruit workers.
There are currently 2.8 million out of work due to long-term sickness with nine million people classed as economically inactive.
More than half of those are aged 50 to 64 but the steepest increase has been for those aged 16 to 34 who account for 22 per cent – but that is up by 3 per cent since 2019 and 2023.
Sir Keir Starmer promised during the election to increase the employment rate to 80% from its current level of around 75% meaning around two million more people in work.
But Shadow Welfare Secretary Helen Whately said: “Every day she kicks the can down the road costs the taxpayer millions of pounds, at this rate rising to £100 billion on sickness benefits by the end of this Parliament, money that instead they are taking from farmers, from pensioners, from businesses.
“But to get people off benefits you need jobs for them to go into, the very jobs businesses are saying since the Budget they will no longer be hiring for.”
The Resolution Foundation said the welfare reforms could boost living standards but warned the plan “needs proper resourcing to really make a difference”.
Greg Thwaites, research director, said: “It’s not yet clear, for example, how the Government will ensure that there are enough employment, training and apprenticeship opportunities to make its ‘job guarantee’ cast-iron for young people.”
The Confederation of British Industry (CBI) demanded Ministers “join the dots” between its decision to increase national insurance and hopes of getting people back into work.
Matthew Percival, of the CBI, said: “The Government can make it easier for businesses to invest in employee health by taking a pragmatic approach to the Employment Rights Bill and expanding tax-free occupational health support.
“CBI analysis shows 49% of businesses would reinvest tax savings into further employee health support, with an additional 26% investing more.”
