KEIR Starmer has criticised Britain’s employment system, stating the country “simply isn’t working” and urging businesses to improve efforts to retain long-term sick employees.
In a back-to-work white paper set to be published, the government will outline plans to reform job centres, provide tailored employment support, and address high unemployment and sickness rates.
Key measures include a personalised service at job centres, replacing traditional benefit monitoring with targeted support such as CV advice and AI tools, according to The Times.
A "youth guarantee" will seek out young people not in work or education, offering training or employment opportunities while imposing benefit sanctions for refusals.
Starmer emphasised a shift from “blaming and shaming” the unemployed to providing meaningful support. “From the broken NHS to the flatlining economy and unemployment, this government inherited a country that simply isn’t working,” he said, promising a plan to tackle inactivity and unemployment drivers.
Ministers also plan to invest £125 million in eight regions, focusing on integrating NHS treatment for the long-term sick with local employment initiatives.
Areas in the North and Midlands with high sickness absence rates will be prioritised. An independent review will explore how employers can help long-term ill and disabled employees stay in work and recruit individuals with chronic conditions.
Rachel Reeves, the chancellor, pledged no further tax rises but faced criticism from business leaders. Rupert Soames, chairman of the CBI, said increased national insurance contributions conflict with encouraging hiring.
Some experts, including Dave Finch of the Health Foundation, stressed the importance of employers using existing resources effectively to prevent absenteeism. Others, like Helen Whately, criticised Labour for avoiding difficult decisions on sickness benefits, The Times reported.
The white paper will be tested through pilot schemes, with broader consultations on benefits reform expected next year.
