According to a study by the Centre for Policy Studies (CPS) out of the six largest EU economics, Britain has the highest jobless rate. It was reported that nearly 1 in 8 households has no on in the home working. The CPS argues that changing 10 per cent of the workless households out of that category would add about 1 per cent to Britain’s gross domestic product or GDP.
The report which bears the title of More Producers Needed: Why Tackling Workless Households Can Lead to Growth, outlined ways to curb the problem and reduce the numbers. Economist and author of the report, Dr. Peter Warburton, believes the Government should offer a greater push of getting workless homes to become more productive.
Jill Kirby of the CPS said: “This report shows that welfare reform is urgently needed to pull down the barriers between working families and those who are entirely dependent on benefits.
“Increasing work participation is important not just for the families involved, but also to strengthen the British economy and to aid recovery – a recovery in which everyone can play a part.”
Dr. Warburton believes imposing sanctions on government benefits so that people are more compliant with training and labour market programmes will help to get more jobless working again. Besides a change to the benefit system, he suggests greater regional pay flexibility.
The report has been released near the same time that the government is beginning its welfare reform. Part of that reform will include people on welfare being judged in a Work Capability Assessment as to what they can do versus what they can’t do. Ministers have been clear that those that do need help such as the severely disabled or terminally ill will be assisted. The assessment is to determine those people that can work and to get them self-reliant versus government reliant.
Minister for Employment Chris Grayling said: “It’s a scandal that so many people were cast aside to a lifetime on benefits, wasting their talents and potential and costing the taxpayer almost £135billion.
“While some will be genuinely too sick to work, there will be others who were told by the state that they were better off on the sick – this stops now.”