The Department for Work and Pensions (DWP) has been urged to prioritise employment over benefits to reduce the welfare bill, according to a new report from the Joseph Rowntree Foundation (JRF). The thinktank argues that achieving the Labour government's goal of an 80% employment rate would cut the cost of Universal Credit by £10 billion.
Thinktank's Analysis
Economists at the JRF have calculated that meeting the government's target would reduce spending on Universal Credit by an eighth of its current level. The research pushes back against the "dominant political narrative" that social security spending is spiralling out of control. Instead, it highlights that official projections indicate spending on non-pensioner benefits will remain stable at around 5% of GDP for the remainder of the parliamentary term.
Sam Tims, JRF's lead analyst, stated: "We know what happens when the holes in the safety net are made ever bigger. The reasons people need support don’t disappear, instead low-income families go hungry." He added: "So government should focus on the root causes of economic insecurity. These are the underlying economic failures that drive social security need – like the decent jobs that need to be created, the affordable homes we need, and better health."
Public Opinion
A survey of 4,000 people revealed that 59% supported the idea of reducing the DWP bill in the longer term by addressing underlying causes such as job creation, housing, and health. In contrast, 20% preferred cutting costs quickly by restricting eligibility for benefits. Fewer than 10% backed reducing the amount claimants receive, with 70% favouring a long-term approach.
Government Response
A DWP spokesperson said: "Reforming welfare is about getting people who can into work. Our investment in subsidised work, jobs grants, apprenticeships and training will support half a million young people." They added: "Putting the Right to Try into law is allowing people on sickness and disability benefits to try work without the immediate fear of losing their benefits, while our £3.5bn investment in employment support for sick and disabled people is giving them the genuine help they need to move into work and out of poverty."
The report comes amid ongoing debates about the future of Universal Credit and the most effective ways to reduce welfare spending while supporting those in need.
