Matthew Lynn

Labour will struggle with its plan to get Britain back to work

Liz Kendall the Work and Pensions Secretary (Getty Images)

Liz Kendall wants Britain to get back to work. The Work and Pensions Secretary has unveiled a target for the country to reach an 80 per cent employment rate. But hold on: that ‘ambition’, as the government is calling it, is completely unrealistic. Labour’s plan to reverse the dire labour market and drive up Britain’s employment rate seems certain to fall short of its ambitious target.

Spending on sickness and disability benefits is set to increase by £30 billion over the next five years

Britain is the only country in the G7 whose employment rate has still not returned to pre-pandemic levels: 2.8 million people are out of work because of ill health or disability; one in eight young people are not in education, employment or work. Spending on sickness and disability benefits is set to increase by £30 billion over the next five years, according to the Office for Budget Responsibility.

Something needs to change; that much is clear.

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Written by
Matthew Lynn

Matthew Lynn is a financial columnist and author of ‘Bust: Greece, The Euro and The Sovereign Debt Crisis’ and ‘The Long Depression: The Slump of 2008 to 2031’

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