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The budget will “break down the barriers” to getting people back into work in the face of more than a million vacancies and a sluggish economy, the chancellor has told Sky News.
With more than half a million people having disappeared from the UK workforce since the outbreak of COVID-19, tackling economic inactivity will be a central part of Jeremy Hunt’s tax and spending plans.
He is due to announce a shake-up of the benefits system aimed at encouraging claimants to move into work or increase their hours.
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This will include a rise in the maximum universal credit childcare allowance – which has been frozen at £646-a-month per child for years – by several hundred pounds, according to the Treasury.
The government will also start paying parents on universal credit childcare support upfront, rather than in arrears, in a move to help those struggling to take on a job or getting into debt under the current system due to the hefty upfront costs.
In addition, the chancellor will set out plans to encourage over-50s to return to work through an expansion of skills training.
And the system used to assess eligibility for sickness benefits will be scrapped, enabling claimants to receive payments even after they return to employment.
There will also be a ramping-up of sanctions for claimants who do not look for or take up work.
Separately, the chancellor is expected to announce households on prepayment meters will no longer pay more for their energy than those on direct debits.
Read more:
Spring budget 2023 – here is what to look out for
Speaking to Sophy Ridge On Sunday, Mr Hunt said: “We still have over a million vacancies in the economy.
“And the Brexit decision was a choice – the right choice, in my judgement – to say we shouldn’t fill those vacancies from unlimited migration.
“We need to break down the barriers that stop people here in the UK from working, whether that’s parents who have…
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