Death of the work ethic: With Labour at war over benefits cuts, ONE IN FOUR young people consider quitting workforce entirely_Nhy
A generation of young people risk is languishing on benefits after one in four said they considered quitting the workforce.
Poor mental health was the most frequent reason given by under-25s for wanting to drop out of employment.
A stark report lays bare the scale of Labour’s challenge as it seeks to see off opposition from its own backbenchers to slash the ballooning welfare bill and encourage adults back to work.
And the crisis looks set to deepen as one in ten workers is said to be actively considering leaving the workforce, equivalent to 4.4million Britons. This rises to a quarter of 18 to 24-year-olds, who are 40 per cent more likely than older generations to give poor mental health as a reason for quitting work.
A third of those classed as ‘economically inactive’ are ‘not interested’ in returning to jobs – with 37 per cent saying low ‘self-esteem and confidence’ acts as a barrier, a report from accounting firm PwC reveals. It concludes that considering leaving work has ‘gone mainstream’.
Yesterday Health Secretary Wes Streeting warned there is an ‘overdiagnosis’ of mental health conditions leading to ‘too many people being written off’.
It comes as Labour is expected to water down plans to cut benefits for disabled people over fears of a backbench rebellion.
Work and Pensions Secretary Liz Kendall had been planning to freeze personal independence payments (PIP) to tackle the spiralling welfare bill. But the plans are said to have been axed in the face of a party backlash.
Health Wes Streeting warned that an ‘overdiagnosis’ of mental health conditions was seeing too many people written off
Work and Pensions Secretary Liz Kendall’s plans to freeze personal independence payments (PIP) have reportedly been scrapped following a party backlash
Official figures show 9.3million people – a fifth of the working age population – were ‘economically inactive’ at the end of last year as they were not working or looking for a job. This includes 2.8million not working due to long-term sickness, with a large proportion of these claims due to mental health.
Last year the proportion of those receiving disability benefits whose main condition was mental or behavioural hit 44 per cent, up from 40 per cent in 2019 and just 25 per cent in 2002, according to the Institute for Fiscal Studies.
Among them are tens of thousands of youngsters who now go straight from studying to being economically inactive, raising concerns many could be consigned to a life on benefits. Meanwhile the cost of sickness and disability benefits for working age people is up £20billion since the pandemic.
The report from PwC – which surveyed more than 300 businesses and 4,000 adults – found 63 per cent of firms have seen a rise in people leaving work and becoming inactive, with 70 per cent of businesses saying mental health has been the key driver.
Some 57 per cent of employers said they would be worried about taking on someone who is economically inactive.
Marco Amitrano, of PwC, said: ‘As well as the cost to individuals, businesses are understandably concerned about the direct impact on productivity and financial performance. Much of the current conversation focuses on how to get people outside the workforce back in, equally important is stemming the flow leaving the workforce in the first place.’
He said the research shows ‘the path from work to inactivity is not set in stone’, with 43 per cent saying they were interested in returning. But perhaps most worryingly it found 31 per cent are not interested in returning to work, with 48 per cent citing a long-term mental health condition as the reason.
Last year the proportion of those receiving disability benefits whose main condition was mental or behavioural hit 44 per cent, among which are thousands of youngsters who could go from studying to being economically inactive (file photo)
The report found that more than 300 businesses and 4,000 adults – found 63 per cent of firms have seen a rise in people leaving work and becoming inactive (file photo)
The Health Secretary told the BBC’s Sunday With Laura Kuenssberg show: ‘Mental wellbeing, illness, it’s a spectrum and I think definitely there’s an overdiagnosis but there’s too many people being written off and… too many people who just aren’t getting the support they need.’
He added: ‘Those three million [economically inactive] people who are shut out of the labour market because of long-term illness, That’s a population the size of Greater Manchester. So you can see the scale of the problem.’
It comes after a recent report from Policy Exchange found the current welfare system will cost every taxpayer up to £1,500 per year by 2028/29 and does not incentivise claimants to seek work.
A government source said: ‘The broken welfare system we inherited is trapping thousands of people in a life on benefits with no means of support, or any hope for a future of life in work.
‘Our reforms will deliver fairness and opportunity for disabled people… protecting the welfare system so it is sustainable for the future and will be there for those who need it.’
