New welfare shake-up could see 100,000 people in part-time work face a benefit cut
dailyrecord.co.ukMore than 100,000 people in part-time employment could face a benefit cut if they fail to properly look for more work, the Chancellor is set to announce in his mini-budget on Friday.
Among a range of measures set to be revealed by Kwasi Kwarteng is a significant shake-up of the welfare system. He is expected to announce that claimants working up to 15 hours a week on the National Living Wage will be required to meet regularly with a work coach and to take “active steps” to increase their earnings.
If they fail to do so, under the plan, their benefits could be reduced. Billed by the Treasury as a gradual expansion, the move will be an increase from the incoming 12-hour threshold for a more intensive work search regime and is expected to take effect from January as part of the Universal Credit system.
Mr Kwarteng has described the policy as a “win-win”, pitching it as a way to fill 1.2 million job vacancies across the country.Under the changes, claimants aged over 50 will also get extra support from work coaches, while the newly unemployed will receive nine months of targeted sessions.The Treasury believes that rising economic inactivity among the over-50s is contributing to a shortage in the jobs market, driving up inflation and limiting growth.A return to pre-pandemic economic activity among over-50s, according to a UK Government estimate, could boost GDP by up to one percentage point.Mr Kwarteng said: “Our jobs market is remarkably resilient, but it is not perfect.
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