Budget 'could lead to reform of disability benefits to get people back to work'

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The next budget could include reforms to disability benefits in a bid to get people back to work, experts have warned.

Jeremy Hunt prepares to announce the government's spring budget next week as the country battles runaway inflation, rising interest rates and devastating food prices.

Speaking at the Resolution Foundation's budget preview event, Chris Giles, editor of the Financial Times, warned that among the major announcements that should be announced, disability benefit reforms could be an option to help address labor shortages in the UK.

“The most likely is disability benefit reform, but not a huge one,” Giles told the panel.

He added: "I think there will be a carrot and a stick because the Chancellor is concerned about the increase in the number of people on disability benefits.

"The charitable way of putting it is that people are better off in work than out of work and have a better life and maybe they need a boost. That's not how many people will see it, but that's how the government will see it.

A huge wave of early retirements following the Covid pandemic has been found to be the main cause of labor shortages in the UK, a new report has found. The committee warned that the labor outlook for the UK was "gloomy", finding that economic inactivity has risen by 565,000 since the start of the pandemic.

It There has also been a sharp rise in long-term illness since the start of the pandemic, with the Office for National Statistics (ONS) finding that 217,000 people who had not worked in the year ending July reported a long Covid. However, the report pointed out that most of the increase in illness-related inactivity was among people who were already taking leave, and those who left their jobs were more likely to end their careers prematurely. p>

Kate Bell deputy general secretary of the TUC union agreed with Mr Giles, telling the think tank panel that she hoped the government was not moving in the direction of benefit reform of disability.

"I'm afraid it will happen," Ms Bell said. “During the year, they announced large amounts of conditionalities, none of which targeted people who left the labor market or tackled the fundamental problems these people face.

"The government usually asks for benefit conditionality when it has nothing to say."

"I think it could happen because they...