Britain used to be a nation of grafters, but now over half of our households receive more in state benefits than they pay in taxes. That's 36 million people.
It's also no surprise. Since day one of Reform UK I have warned that Britain faces a dependency crisis. Westminster has made 'not working' a viable choice, with benefits spending now well over £120 billion a year. The weight of this bill will crush our economy, unless we get a grip. That is why in early January I launched our new policy: to make Britain work, we must make work pay.
After decades of government failure, a culture of entitlement has taken root. The number of people on out-of-work benefits stands at a stunning 5.2 million. That is over a million higher than pre-Covid levels. Even more shockingly, 27 million people get an average of £23,000 a year in cash benefits and 'benefits-in-kind'.
At the same time the Government’s broken welfare system deters people from working. So there are over 1 million job vacancies waiting for workers. And I have spoken with too many good businesses who tell me their employees are resigning to go on benefits. It’s sheer madness.
This tragic waste has to stop. Long-term unemployment locks people into poverty. It causes a spiral of family breakdown and damages mental health. The truth is that Labour and the Tories have abandoned communities around the country. For some, worklessness has become a way of life.
People need the dignity and self-worth of a decent job. A dream of something better. But instead, Government and big business want to import more cheap, low skilled labour. We must do better. We must turn Britain back into a nation of grafters and make work pay.
Reform UK has the policies to do this. We could give a huge lift to the income tax starting threshold, raising it from £12,571 to £20,000. This would free up 6 million of the poorest from income tax. It would also mean many on low incomes keeping £30 more per week – a reason to work more, not less. The key point is that people should always be better in work than out of it.
We have costed this policy at £40 billion net per annum. But we will also motivate and train 2 million people on benefits to return to work. Whether a talented youngster, or an over-50 with experience, everyone deserves another chance. This will save £30-40 billion over two years, paying for the tax threshold rise - with further cuts to government waste making up the balance.
The only answer is bold leadership, proper management and proper direction. We will end the national disgrace of benefits Britain. We will break the culture of dependency and entitlement. We will unlock Britain’s talent and energy. For the lowest paid and least well off, we will make work pay.
Labour have no answers. The Tories are trying to blame Covid. But the rise in state dependency began with New Labour, long before the pandemic struck. The truth is that the Westminster elite have broken our economy and broken Britain. We will fix it
27th Jan 2023 - a speech given by Jeremy Hunt - Chancellor of the Exchequer :
Jeremy Hunt has promised a "fundamental programme of reforms" to get millions of people back to work as he said the drive will be the key to fixing the UK’s "productivity puzzle".
The Chancellor said approximately one fifth of UK adults of working age are economically inactive - about 6.6million people - and of those 1.4million want to work but a further five million do not.
He described this as an "enormous and shocking waste of talent and potential" as he told those people that "Britain needs you".
Delivering a keynote speech on the UK's economic future in central London this morning, Mr Hunt said: "So it is time for a fundamental programme of reforms to support people with long term conditions or mental ill the barriers and prejudices that prevent them from working.
"We will never harness the full potential of our country unless we unlock it for each and every one of our citizens. Nor will we fix our productivity puzzle unless everyone who can participate does.
"So to those who retired early after the pandemic or haven't found the right role after furlough, I say Britain needs you and we will look at the conditions necessary to make work worth your while."
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