MILLIONS of Brits could be stripped of all their benefits if they fail to find a job after a fixed period of time.
Jeremy Hunt announced his “Back to Work plan” in the Autumn Statement, which will help up to “1,100,000 people with long-term conditions, disabilities or long-term unemployment to look for and stay in work”.
Belinda JiaoChancellor Jeremy Hunt announced the latest welfare crackdown in the Autumn Statement[/caption]
As part of this, ministers are set to expand key health and employment programmes such as NHS Talking Therapies, Restart, and Universal Support in a bid to get people off benefits and into work.
Mr Hunt also said the Government would provide a further 1.3bn of funding to offer extra help to the 300,000 people who have been unemployed for over a year.
However, Mr Hunt warned, this will come alongside tougher sanctions for people who don’t look for work.
He said: ” If after 18 months of intensive support jobseekers have not found a job, we will roll out a programme requiring them to take part in a mandatory work placement to increase their skills and improve their employability.
“And if they choose not to engage with the work search process for six months, we will close their case and stop their benefits.
“Taken together with the labour supply measures I announced in the Spring, the OBR say we will increase the number of people in work by around 200,000 at the end of the forecast period, permanently increasing the size of the economy.”
In September, Work and Pensions Secretary Mel Stride launched a consultation on plans to tighten the Government’s “work capability assessment”, which determines whether someone is eligible to claim universal credit instead of working.
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The response to the consultation is expected to be published today.
Currently, individuals who are unable to walk 50 meters without assistance qualify for the “limited capability for work and work-related activity” category.
This status exempts them from the requirement to seek employment.
However, Mr Hunt announced the “mobility” criterion will be scrapped.
In his speech, the Chancellor also confirmed he will raise benefits by 6.7 per cent, aligning with September’s inflation rate.
There had been speculation the Chancellor would choose the October’s 4.6 per cent inflation figure as it would have saved the Government around £3 billion.
In a “turbo-charged” mini-Budget, Mr Hunt also confirmed plans to cut National Insurance for workers and boost the minimum wage to £11.44.
That’s a pay rise of more than a quid for more than three million of the lowest paid.
With the triple lock untouched, the state pension is also set to increase by 8.5 per cent, keeping in step with the usual earnings measurement.
And drinkers will breathe a sigh of relief as an alcohol duty freeze means pints, spirits and wine prices will not be hiked heading into the Christmas party season.