The government says “radical” reforms to the system for letting people return to work while sick will help cut welfare bills.
Government sources have confirmed that Labor hopes to “save” welfare spending in the October 30 budget.
But it said the savings would be achieved through “our own reforms” rather than the Conservative plan.
It was previously reported that Chancellor Rachel Reeves was considering sticking with the Conservatives’ plan to restrict access to benefits on the grounds of poor health.
The government has not ruled out the possibility but stressed that its plans would “fundamentally” change the well-being of people whose health conditions limit their ability to work.
The planned changes – contained in a draft blueprint titled Making Britain Work – are expected to be published later this autumn.
Labor wants changes to work ability assessment, Used to determine whether people can receive additional income-related benefits because of a health condition or disability.
It promises an “appropriate plan to support disabled people in work”, as well as an as-yet-unspecified plan to ensure every 18 to 21-year-old “earns or studies”.
change The scheme will join Health Secretary Wes Streeting’s plan to send “skilled teams of doctors” to hospitals in areas with the highest numbers of sick leave.
It has named Newcastle, Bolton and Blackpool as three cities where doctors will be sent to help people get back into the workforce.
In the wake of the pandemic, economic inactivity has risen sharply and now affects 9.3 million people who are neither working nor looking for work, an increase of 713,000 people since the start of the pandemic.
One in eight young people is now neither in school nor in work.
New statistics show that 1.8 million inactive people – 600,000 of whom have a long-term illness – want to return to work.
Kendall called the new figures “a shocking indictment of the Conservative Party’s legacy and a stain on our country.”
“The UK remains the only major economy where employment has not yet recovered from the pandemic,” she said.
“We will use all the skills of the British people to get our country moving again and our economy growing again.”
The reforms promise major reforms to integrate job centers with the National Careers Service to provide better support and empower local leaders to come up with solutions that boost employment.
Ahead of the Budget, there is speculation that Chancellor Rachel Reeves is considering cutting benefits to help plug a reported £40bn spending gap.
The work capability assessment determines what work-related conditions applicants must meet to continue receiving full benefits, and whether they are eligible for a top-up payment.
Reeves reportedly plans to stick with plans announced by his Tory predecessor Jeremy Hunt to make changes to the test, which the Conservatives claim will save an estimated £1.3 billion a year by 2028-29.
The government also inherited Public consultation on changes to Personal Independence Payments (PIP)is a separate payment made to the working-age population, including those who are employed, to cover additional health-related expenses.
Changes being considered by the Conservatives include replacing monthly cash payments with a voucher system or one-off grants for specific expenses.
Liz Kendall has so far not said whether she supports or opposes her Conservative predecessor’s proposals.
Employment minister Alison McGovern told Channel 4’s Today programme: “If we do what the Conservatives have done for 14 years we will suffer the same failures.”
