UK politics: Kendall says ‘you must work if you can work’ as she warns benefits bill set to soar by £26bn

The work and pensions secretary is now announcing the wide-ranging reforms designed to tackle economic inactivity and deliver the government’s promise to bring more than two million people back into work.

Sir Keir Starmer risks a blow to his pledge to reset relations with the European Union after Brexit amid fears one of his key allies could be ousted in Friday’s elections in Ireland.

The Labour prime minister has built a strong personal rapport with the Irish leader Simon Harris since his election in July.

But a new poll for the Irish Times suggests Mr Harris’ Fine Gael has slumped from first to third place – after a gaffe which has been compared to Gordon Brown’s 2010 ‘bigoted woman’ comments.

Kate Devlin reports

Working with the 12 metro mayors, Labour has pledged to invest £15 million and devolve power to local areas to create work plans tailored to local needs.

The government says this will deliver “real employment opportunities for people who know their communities best.” Liverpool Mayor Steve Rotheram said: “Devolution is already making a huge difference to people’s lives in the Liverpool City Region.

“We’ve helped thousands of people into work, created opportunities for young people through apprenticeships, and supported adults to gain the skills they need to thrive.

“That’s why I welcome the government’s plans to give Mayors more of the tools and resources we need to break down the barriers keeping people out of work.”

Editorial: The already unpopular Starmer government will doubtless make more enemies during this process. But it needs to bite this bullet

Russia has expelled a British diplomat, accusing him of espionage, the Interfax news agency cited Russia’s FSB security service as saying on Tuesday.

The TASS news agency cited Russian Foreign Ministry spokeswoman Maria Zakharova as saying that the ministry had summoned the British ambassador.

According to the FSB, the British diplomat was a replacement for one of six UK diplomats expelled in August, also on espionage charges. It said the diplomat had provided false information on his documents and carried out espionage and sabotage activities.

There was no immediate comment from Britain’s Foreign, Commonwealth and Development Office. The British embassy in Moscow did not respond to a request for comment.

Read our Ukraine blog for the latest

Under Labour’s new plans, every 18- 21-year-old in England will be ensured access to an apprenticeship, training or education opportunities to boost their chance of securing work. This is what the party calls the ‘Youth Guarantee,’ a measure that was included in their manifesto.

The scheme comes as the most recent statistics show that 869,000 people aged 18 to 21 are not in education, employment or training. This represents 15 per cent of people in this age bracket, and the highest the figure has reached since the Covid pandemic.

As part of the guarantee scheme, partnerships with cultural or sporting organisations have been established to offer work or learning opportunities to young people. So far, these include the Premier League, Channel 4 and the Royal Shakespeare Company.

Alongside this, £45 million will be invested into eight youth “trailblazer” areas across the country to identify young people at risk of becoming inactive and providing them with opportunities.

But “in return for those new opportunities”, the DWP says, “young people will be expected to engage with training or work that’s on offer.”

Work and pensions secretary Liz Kendall has confirmed that this means those who don’t take up training or work opportunities will see their benefits sanctioned, including possibly losing them entirely.

The last asylum seekers living on the Bibby Stockholm are set to leave the barge.

A group of eight remaining men will leave the accommodation moored in Portland, Dorset, today, according to a support group.

A spokesperson for Portland Global Friendship Group told the PA news agency: “We held our last community drop-in yesterday. We have been saying goodbye to the men for months as there has been a continual movement since the men first arrived in August last year.

“We continue to support many asylum seekers nationwide from the Bibby Stockholm remotely as they navigate the complex asylum process.

“Portland Global Friendship Group has created a meaningful community here on Portland, at its essence is friendship, kindness and compassion. We are considering how this energy can continue going into the future.”

Hundreds of residents have departed from the barge after the government said it would not renew its contract which expires in January.

The Bibby Stockholm, which can house up to 500 people, has faced a series of setbacks since it was commissioned in April 2023.

The British Chamber of Commerce (BCC) has said the government’s plans to get more people back to work and improve employment support “has the potential to make a real difference for employers, employees and local economies.”

Jane Gratton, deputy director of public policy at the BCC said: “Bringing more people back into the workforce is essential to tackle skills shortages and boost economic growth. Government and business need to work together to remove barriers for people who want to work.

“Today’s White Paper – with its emphasis on improving access to health, skills and employment support – has the potential to make a real difference for employers, employees and local economies.

“Our research shows only 1 in 10 SMEs are using Job Centres and this is a lost opportunity. It’s crucial to modernise the service to better connect businesses and job seekers.

“The high number of working age people who are economically inactive though ill health is a particular concern for employers. We look forward to engaging with the review into how employers can be supported to promote healthy and inclusive workplaces. Tax reforms would make it easier for employers to take a proactive role.

“Healthy staff make healthy businesses, but delivery is key. It is important changes are made quickly and effectively, to help firms develop thriving workforces in the years to come.”

Labour’s new plan comes at a time when a record 2.8 million people are out of work due to long-term sickness – seven per cent of the working population. Many experts attribute this to the combined effects of long-term NHS spending cuts and the Covid pandemic.

To address this, the government has pledged that extra NHS capacity will be deployed to 20 areas across England where levels of economic inactivity are highest.

The paper also takes the opportunity to restate Labour’s manifesto pledges for the NHS. It highlights the plans to provide an extra £22.6 billion in 2025/26 to support the delivery of 40,000 additional appointments, lower waiting times and 8,500 mental health staff.

Alongside this, the government will invest £125 million in eight areas across England and Wales to improve local work, health and skills support. These will be: West Yorkshire, the North East, South Yorkshire, York and North Yorkshire, Greater Manchester, plus two areas in London and one in Wales.