𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Britain’s worklessness “emergency” means the country is losing more than £443billion a year in economic output, according to a new analysis. It is claimed the amount lost to the economy by people who are not in work and receive Universal Credit is the equivalent of £33,900 for every working household – up by roughly £8,500 since Labour took power.

Kemi Badenoch’s party has warned of an “economic emergency” with the annual economic loss from claimants not in work going up by more than £111billion since Rachel Reeves became Chancellor.

Shadow Work and Pensions Secretary Helen Whately said: “The true cost of worklessness is the lost opportunity for individuals, who are missing out on skills, experience and purpose.”

The Tories said the number of UC claimants not in work has gone up by more than 1.4 million since Labour were elected.

Ms Whately said the loss in output of nearly £34,000 per working household showed the “catastrophe of this failing Labour Government”, adding: “It reflects lost opportunity for individuals and lost economic activity for the country, with the damage rippling across the wider economy. Labour are killing jobs and weakening the incentives to work.”

However, the Department of Work and Pensions accused the Conservatives of a “misleading” interpretation of the figures.

A spokesperson said: “These claims are misleading. People moving from old legacy benefits onto Universal Credit – nearly 80% – accounts for the vast majority of the increase in UC over the past year. This is a transition we inherited from the previous Government, alongside a system that writes people off.

“This Government is determined to fix this. That’s why we’re removing the financial incentives in Universal Credit that encourage inactivity, and as part of our wider plans to Get Britain Working, we have redeployed 1,000 work coaches to help thousands of sick and disabled people who were previously left without contact for years.”

The Conservatives claim Labour’s shock increase in employers’ National Insurance has made it harder for young people in particular to get a job. This tax hike, alongside increases in workers’ rights, are blamed for making bosses more reluctant to hire.

Shadow Communities Secretary Sir James Cleverly claimed “more and more people are choosing welfare at the taxpayer’s expense rather than working”.

He said: “Last year Keir Starmer made a half-hearted attempt to trim a tiny bit of the benefits bill. But when his backbenchers threatened to revolt, he performed a screeching u-turn. Instead of sticking to his guns, he flung his arms up in surrender, and increased welfare spending by lifting the two-child benefit cap. That is not leadership.”

The Tory warning follows official figures showing the unemployment rate is at a near five-year high of 5.2% while pay has grown at its slowest rate in more than five years.

The economy failed to grow in January and there was growth of a just 0.1% in December. The Iran war and the consequent rise in energy prices is expected to push inflation higher.