Rachel
Reeves speech today set out how a fair and affordable social security system
will help us to earn our way out of the cost-of-living crisis.
 |
| Rachel Reeves MP |
In her first major
policy speech since becoming shadow Secretary of State for Work and Pensions,
Rachel Reeves MP set out the next steps in Labour’s plan to earn our way out of
the cost-of-living crisis and ensure our social security system is fair and
affordable highlighting the ‘costs of failure’ of the Tory-led government,
showing how long-term unemployment, low pay and insecure jobs are adding
billions to the social security bill.
This includes:
· failure to reverse rises in levels of youth and long-term unemployment that
will add to benefits bills and hit tax revenues for decades to come
· record numbers of people stuck in low paid jobs, or working shorter hours than
they want, resulting in rising expenditure on in-work tax credits and housing
benefit. Official figures published alongside the Autumn Statement show that
spending on Housing Benefit for those in work (or short term sick) is set to
rise by over £1bn between now and 2016-17.
· increasing job insecurity, including high numbers on zero hours or temporary contracts,
which makes it harder for people to buy their own home or save for a pension.
Only Labour, the
‘party of work’, can deliver the reforms needed to tackle the causes of rising
benefit bills, so we can keep the costs of social security under control, while
recognising responsibility and contribution’.
Labour
government will introduce a Basic Skills Test so we intervene earlier to
prevent long-term unemployment and low earnings.
Tackling the lack of
basic skills among jobseekers is a key part of Labour’s plan to earn our way
out of the cost-of-living crisis by getting more people into work and helping
them to earn a decent standard of living. Poor English and maths often hold people
back from getting jobs, or trap them in a cycle between a low paid and insecure
job and claiming benefits.
Rachel Reeves said:
“We all know that basic
skills are essential in today’s jobs market, but the shocking levels of English
and maths among too many jobseekers are holding them back from getting
work. This traps too many jobseekers in a vicious cycle between low paid
work and benefits. Government plans in this area just aren’t
enough. They’re now asking jobseekers who exit the failed Work Programme to
take up literacy and numeracy training, three whole years after those people
first make a claim for benefits. A Labour government
will introduce a Basic Skills Test to assess all new claimants for Job Seekers
Allowance within six weeks of claiming benefits. Those who don’t have the
skills they need for a job will have to take up training alongside their
jobsearch or lose their benefits. Labour’s Basic Skills Test will give the
long-term unemployed a better chance of finding a job and will help us to earn
our way out of the cost-of-living crisis.”
The Basic Skills Test,
will work alongside further reforms that Rachel Reeves and the Labour DWP team
will be unveiling over the coming months to make the benefits system and
back-to-work support better equipped to help people find a job and earn enough
to make ends meet .
Editor's notes:
About the Labour’s Basic
Skills Test
·
Tackling the lack of
basic skills among jobseekers is a key part of Labour’s plan to earn our way
out of the cost-of-living crisis by getting more people into work and helping
them to earn a decent standard of living. Poor English and maths too often hold
people back from getting jobs, or trap them in a cycle between low paid
insecure jobs and claiming benefits.
·
Today, too many
jobseekers are locked out of work due to a lack of basic skills. Long term unemployment under this Government has
reached levels not seen since the last Tory administration with over 850,000
people been out of work for a year, and 440,000 out of work for two
years.
·
Nearly one in ten people
claiming JSA lack basic literacy skills, and over one in ten lack basic
numeracy skills. The lack of IT skills is even more of a problem, with over
half unable to complete basic word processing and spreadsheet tasks, and nearly
half lacking even basic email skills. Those out of work are twice as likely than those in work to
lack basic English and maths skills.
·
Nearly 250,000 people
started claiming Jobseekers Allowance in November (the latest available figures).
Up to one in ten people may be subject to Labour’s Basic Skills policy each
month.
·
A lack of basic skills
also leads to people cycling between insecure low-paid work and claiming
benefits. Government research shows that a third of people claiming Jobseekers
Allowance had claimed the benefit at least three times before and that nearly twenty per cent of those with
repeat claims for jobseekers allowance have problems with reading or
numeracy.
·
The Government’s plans
on basic skills are too little, too late. While they have continued Labour’s
pledge to fund training for those who don’t have level 2 qualifications,
they won’t take the action to ensure that jobseekers take up the training on
offer. It’s a sign of their failure in this area that the requirements for
jobseekers exiting the failed Work Programme includes literacy and numeracy
training, three years after those people first make a claim for benefits.
·
While Labour’s plans to
reform the education system for the forgotten 50 per cent are vital to ensuring
that young people leave school ready to work, we need to take action now to
ensure that more people can move into long term jobs, and help us to earn our
way out of the cost of living crisis.
·
Labour will introduce a
Basic Skills Test. This will ensure that all new jobseeker’s have an assessment
of their basic maths, English and IT skills at the start of their jobseekers’
claim. Those who don’t have the skills they need for a job will have to take up
training alongside their jobsearch or lose their benefits.
2.
About Labour’s Compulsory Jobs Guarantee
·
Labour would introduce a
compulsory jobs guarantee to ensure work for young people out of work and
claiming Jobskeers Allowance for over a year, funded by the bankers’ bonus tax
and those claiming Jobseeker’s Allowance for two years or more, funded by
restricting pensions tax relief for very high earners. Those who refuse to take
jobs under the jobs guarantee would lose their benefits.
·
This will cut the cost
of unemployment and prevent scarring effects that affect people’s employability
for the rest of their lives.
