Rachel Reeves is set to announce a £3billion cut to the welfare bill in her upcoming Budget, forcing more Britons back into work.
The Chancellor plans to tighten access to sickness benefits by reforming the Work Capability Assessment, following through on Conservative proposals to save the sum over four years, the Telegraph reports.
A Government source said: “We’re not going to duck the difficult decisions to get to grips with the welfare bill.”
Meanwhile, Work and Pensions Secretary Liz Kendall may be preparing to unveil a radical overhaul of the welfare system in a White Paper aimed at getting millions back to work.
New figures show 1.8 million inactive people, including 600,000 who are long-term sick, want to return to employment.
The reforms are expected to compel 400,000 people who are signed off long-term to prepare for work, with some losing benefits unless they take steps to re-enter the workforce.
Ms Reeves has committed to the £3billion savings target, though Ms Kendall will decide the exact changes needed to achieve this.
The Government spokesperson told the Telegraph: “We will deliver savings through our own reforms, including genuine support to help disabled people into work.”
Economic inactivity has surged since the pandemic, with over 9.3 million people not in work or seeking employment.
Ms Kendall’s plan dubbed the “Get Britain Working” initiative, will revamp job centres, devolve power to local leaders, and deploy medical staff to help those on long-term sick leave get back to work.
Ms Kendall emphasised the Government’s “pro-work, pro-opportunity, and pro-reform” agenda, aiming to boost the employment rate and bring down the benefits bill.
She also criticised the Conservative legacy, stating: “Good work is good for health, especially mental health,” and outlined plans to overhaul job centres and introduce a “Youth Guarantee” for young people.
