We must get Britons back to work.
This Autumn statement is a critical moment. Whether or not it is the last autumn statement before the election, what is certain is that it is among our last chances to resolve some of the problems afflicting the economy.
So far, the discussion and debate on what the Chancellor will announce has mostly focused on whether he will cut taxes to fuel much needed growth. To that end the Treasury has been dropping hints that taxes will be reduced. As someone who has for some time believed that the UK economy is being overtightened and that we need growth desperately, I welcome what looks like a move to reinstate the overarching need for growth which necessitates a serious reduction in the tax base.
Yet as vital as all that is, it isn’t the only thing which will affect our economic prospects over the next few years. Astonishingly, following Covid, there are now more than 2.6 million people out of work due to long-term sickness and disability, a number which seems set to rise. If this continues, then the inability of businesses to recruit people to meet the needs of the growing economy will hamstring all our other efforts to get growth going.
The government needs to show the courage to get as many as humanly possible into gainful employment for the economy’s sake and for the sake of those languishing on sickness benefits.
There are still too many people languishing on “legacy” benefits that simply don’t work. They should be moved onto credit, where they will get much better support and assistance. Once enabled to get back in work, many of those written off by the Treasury could become taxpayers and contributors to the exchequer.
We should also enable the conditionality rules, weakened during the pandemic, to be applied strongly. After all, when they fall out of work, claimants need to consider they are now working to get back to work.
Officials at the DWP know they are in the grip of a seismic shift in the nature of why people are falling into sickness benefit. Many have mental health diagnoses, and of these many are suffering from Depression and anxiety. What is interesting is that depression and anxiety are treatable, particularly if caught early, often using cognitive behavioural therapy amongst other treatments. Given the right circumstances, and the right support, work can be a big step towards better mental health.
Yet this will also require the Government to commit to train more mental health practitioners and change the Assessment on people’s ability to work so they are encouraged to take the first steps into employment.
1-in-5 of those on disability benefits already want a job. This group could be the quickest into work, given the right support and the confidence that their benefits will not be snatched away if things at first don’t work out. They need the confidence of a guarantee that this won’t happen. Paired with the Work Allowances in Universal Credit that exist for disabled people, we could help tens of thousands of people start their journey back to work and off benefits for good.
We, however, shouldn’t underestimate the difficulties many people in this group face. The Government has already, tentatively adopted Universal Support. This is a successful system that sits beside UC which identifies those furthest away from work suffering complex barriers into work. If we are serious about work, it should be scaled up so that hundreds of thousands get the necessary assistance urgently.
Fairness between those working and those on benefits is vital. In return for this added support to help people back into work, the long-term unemployed without sickness or disabilities should be encouraged, even pushed to take the employment opportunities that exist locally.
The government needs to be radical in its approach. Support for those who need it sits well next to the condition that those who can work, seek work - a contract every bit as important as the one you sign when in work.