The UK is facing a worklessness crisis that demands urgent reform in the benefits system, according to Asda chair, Lord Rose.
- Statistics reveal a stark increase in economic inactivity, with 2.8 million individuals unable to work due to long-term sickness, up from 2.2 million before the pandemic.
- Lord Rose emphasizes the need to balance support for the needy while encouraging those capable of contributing to the workforce.
- Business secretary Jonathan Reynolds also voices concerns about post-pandemic labor market challenges, echoing Lord Rose’s sentiments.
- Lord Rose highlights the importance of education in equipping individuals with skills and promoting the workplace as a rewarding and esteem-building environment.
The UK is experiencing a growing worklessness crisis, as highlighted by Asda chair, Lord Rose. He has called upon the government to reform the benefits system to address this issue, citing the increase in individuals who are unable to work due to long-term sickness. The Office for National Statistics reports a rise in this number from 2.2 million before the pandemic to 2.8 million today.
Lord Rose, who has previously held senior positions such as former M&S boss and Ocado chair, insists on the need to boost productivity and tackle economic inactivity. His stance is that while it is crucial to assist those who are genuinely in need, there must also be measures in place to ensure that people who have the ability to work are not discouraged from doing so. According to Rose, there is a delicate balance required in designing a benefit system that performs this dual function.
In his comments to The Telegraph, Rose remarked, ‘We can’t just become a state now where people live on handouts.’ He emphasized that societal attitudes towards work must shift to prevent the normalization of living on benefits without genuine cause. He further defended his perspective by sharing his personal journey, reminding critics of his humble beginnings, living in a caravan, and his continued commitment to working at the age of 75.
His comments resonate with those of business secretary Jonathan Reynolds, who recently expressed anxiety over the labor market’s state in the aftermath of the pandemic. Reynolds’ observations align with Rose’s, indicating a shared concern among business leaders regarding the increasing numbers of people not participating in the workforce.
Lord Rose proposes that the long-term solution to the worklessness crisis includes starting from the beginning with education. He advocates teaching individuals the right skills needed for future employment and fostering a perception of the workplace as not only a source of income but also as a venue for personal growth and self-respect. ‘The workplace is somewhere you can earn money and earn self-esteem,’ he added.
Addressing the UK’s worklessness crisis requires a strategic overhaul of the benefits system, emphasizing education and a balanced approach to economic inactivity.