Keir Starmer’s government is facing opposition from major business organizations as it pushes to create 2 million new jobs for young people. The “Get Britain Working” plan, introduced by work and pensions secretary Liz Kendall, has raised concerns among companies like the British Chambers of Commerce and the Confederation of British Industry.
These organizations believe that Labour’s policies, including changes to employment rights legislation and an increase in national insurance, could actually lead to job losses rather than job creation. Matthew Percival from the CBI emphasized that rising taxes and employment costs may make it challenging for employers to support the government’s objectives.
The employment rights bill discussed in parliament further fueled criticisms, with concerns raised about the potential negative impact on growth, recruitment, and job opportunities. Professor Len Shackleton from the Institute of Economic Affairs pointed out that the increased cost of employing people, especially young individuals, coupled with new employment rights, could deter employers from hiring those without a strong employment history.
Despite some praise for the government’s initiative, there have been warnings about the need for a policy environment that encourages businesses to invest and generate job opportunities. Lord Elliott highlighted the importance of a thriving business community to achieve the goal of reducing unemployment effectively.
Liz Kendall emphasized the government’s commitment to ensuring that those who can work, must work, in an effort to address the rising benefits bill for sickness and disability. The “Get Britain Working Again” plan aims to reintegrate individuals who have been out of work due to long-term sickness, with a focus on providing additional support through the NHS for mental health and job coaching.
While the government plans to implement a new National Jobs and Careers Service and enhance digital services at job centers, concerns have been raised about the impact on vulnerable individuals, particularly those with mental health issues. The Resolution Foundation cautioned that the plan needs adequate resources to be effective, especially in terms of creating sufficient employment, training, and apprenticeship opportunities for young people.
Various organizations and experts, including Turn2us, Joseph Rowntree Foundation, and the Liberal Democrats, have highlighted the importance of fairness, compassion, and effective reforms in the government’s social security policies. The potential cuts to the health and disability benefits budget have raised uncertainties about the support available to disabled individuals on low incomes.
As the government faces criticism and warnings about the impact of its job creation plan, it is essential to consider the concerns raised by business organizations, experts, and advocates for vulnerable groups. Balancing the need for job opportunities with the well-being of individuals affected by policy changes will be crucial in ensuring a successful and inclusive approach to tackling unemployment in the UK.
