Labour vows to shake up DWP benefits system to get 3 million more back into work

Alan Milburn, former Health Secretary in Tony Blair’s government, has led a new study into the labour market launched yesterday in Barnsley.

The Pathways to Work Commission is based on the largest-ever survey of people classified as “economically inactive” - those not in work or seeking work.

The report estimates that three million people in the UK who are economically inactive could be in work with the right support.

Ill health is the biggest driver of rising levels of economic inactivity, but too much weight has been put on the benefits sanction system, the report warns.

Instead, GPs and other medical practitioners need to play a larger part in helping people into work, according to the commission.

And those out of work must have a duty to engage with the Department for Work and Pensions (DWP) to continue receiving benefits.

Speaking to the Yorkshire Post, Alan Milburn said: “There are a group of people too unwell to work, that’s absolutely true.

“But our research tells a different story. Seven out of ten people economically inactive want to work, which is a note of optimism.”

The report criticised the “one stick benefit sanctions” approach which sees those receiving certain benefits having them cut if they don’t engage with Job Centres.

But those receiving Employment and Support Allowance, a sickness and disability benefit, do not have to engage with Job Centres currently to receive payments.

The DWP needs to eliminate fears from disabled people that their benefits will be cut if they are in work, the report said.

Mr Milburn said: “There will be benefit sanctions needed for people who are gaming the system. People who could work but are refusing to do so - it’s not reasonable that the taxpayer pays for that to happen. There should be a duty to engage, which is a two way street.”

Writing in the foreword to the report, Mr Milburn said: “Doubling down on getting more people out of economic inactivity is the key to the UK raising the level of economic growth. The societal consequences of not doing so – in lost income, status and belonging for each person without the opportunity to work – are catastrophic.”

“But so are the welfare costs. Public spending here is projected to rocket by £21 billion over the next five years. This is not sustainable.”

New DWP Secretary of State Liz Kendall attended the launch after doubling down on Labour’s refusal to scrap the two-child benefit cap during a broadcast round of interviews on Tuesday morning.

Giving her first major speech in her role, Ms Kendall criticised the former government’s “strivers versus scroungers” rhetoric as she laid out plans to transform the DWP.

“Under my political leadership, the DWP will shift from being a department for welfare to being a department for work,” she said.

She said the current system is “both too siloed and too centralised” and that “the Conservatives put political point-scoring ahead of solving problems”.

The plans were hailed by mental health charity Mind. Head of Policy & Campaigns, Nil Güzelgün, said: “Today’s announcement and the Secretary’s willingness to challenge stigmatising language towards people with mental health problems who access benefits marks a hopeful new direction from DWP.

“The Secretary is right that the serious root causes pushing more and more people out of work, must be addressed.

“We know that a genuine change in culture within Jobcentres is needed given the levels of mistrust towards them among people with mental health problems.”