Rachel Reeves pledges to tackle welfare bill as jobless numbers rise

Rachel Reeves vows to get more jobless Brits back into work

Rachel Reeves, the Chancellor, has vowed to tackle the spiraling £306 billion welfare bill as the number of jobless individuals continues to increase. With 9.4 million economically inactive and 2.83 million on long-term sickness, Reeves aims to address the workless crisis that is impacting the economy.

New approach to boost economy and employment

Speaking during a trip to meet UK investors in North America, Reeves emphasized the need for a new approach to get Britain working again and ensure sustainable welfare spending. She plans to empower local leaders to play a key role in getting people into work by understanding the local job market and area needs.

Tackling key issues and welfare costs

Treasury officials will focus on addressing crucial issues such as health and childcare that hinder individuals from entering the workforce, thus aiming to boost the economy. Welfare costs have surged by 64% since 2010 and are predicted to reach £326 billion by 2028-29.

Combatting fraud and error in the benefits system

Reeves is also concerned about the 'fraud and error' in the benefits system, which costs around £10 billion annually and is expected to rise. She calls for a shift in the mindset of Job Centres from a 'box-ticking' approach to actively addressing the practical barriers that prevent individuals from securing employment.

Upcoming Budget and challenges ahead

Reeves is set to deliver her first Budget at the end of October, facing a £22 billion deficit that needs to be addressed. With a focus on reinvigorating the economy and getting more people back into work, her initiatives aim to rebuild Britain's foundations and improve the well-being of communities across the country.