Scores of part-time workers could see their benefits cut if they don't look for more work, the Chancellor is expected to announce.
According to reports, Kwasi Kwarteng is planning a new crackdown that will raise the number of hours people have to work before they can stop "actively" seeking a job. The current threshold for a "light-touch" arrangement to kick in is nine hours a week on the national living wage. It will rise to 12 hours from Monday.
Now the Government plans to raise it again in January to 15 hours a week. People will risk having their benefits sanctioned if they fail to take active steps to boost their earnings and meet regularly with a work coach, reports The Mirror.
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Mr Kwarteng is expected to set out the plans in Friday's mini-Budget, where he will unveil a tax-cutting blitz which economists have said will benefit higher earners. Some 120,000 claimants will be affected by the changes.
Mr Kwarteng insisted the policy was a "win-win", pitching it as a way to fill 1.2 million job vacancies across the country. But Shadow Work and Pensions Secretary Jon Ashworth said: "This announcement reveals Liz Truss has no clue how to genuinely help people move into work, fill vacancies and raise living standards.
"It’s staggering these Tory ministers think we’ve had lacklustre growth on their watch because the low paid aren’t working hard enough and need to be threatened with sanctions but bankers should be handed bumper bonuses. Rather than hammering struggling households, on Friday we need a serious plan to support people to return to work with tailored support not more Tory threats."
Under the changes, claimants aged over 50 will also get extra support from work coaches, while the newly unemployed will receive nine months of targeted sessions. The Treasury believes that rising economic inactivity among the over-50s is contributing to a shortage in the jobs market, driving up inflation and limiting growth.
Mr Kwarteng said: "Our jobs market is remarkably resilient, but it is not perfect. While unemployment is at its lowest rate for nearly 50 years, the high number of vacancies that still exist and inactivity in the labour market is limiting economic growth.
"We must get Britain working again. These gradual changes focus on getting people back into work and maximising the hours people take on to help grow the economy and raise living standards for all. It's a win-win. It boosts incomes for families and helps businesses get the domestic workers they need, all while supporting economic growth."
It comes after record numbers of people had their Universal Credit cut or stopped after the number of sanctions went up. The number of claimants subject to a sanction rose from 3,827 in May 2021 to 109,506 in May 2022.
Work and Pensions Secretary Chloe Smith said of the plan: "Whether it's increasing their hours in their current role, entering a new sector or switching careers, we want people of all ages and all stages to be able to progress into fulfilling careers. The expertise our dedicated DWP work coaches bring will help to drive this change by removing barriers to progression and opening up opportunities for training and building skills, to increase earnings."
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