The Coalition's failure to tackle long-term unemployment, low pay, and insecure jobs is adding to social security bills as well as undermining the strength and future prosperity of our economy.
Nearly one
in ten people claiming Jobseekers Allowance (JSA) lack basic literacy skills, and over
one in ten lack basic numeracy skills. The lack of IT skills is even more of a
problem, with over half unable to complete basic word-processing and
spreadsheet tasks, and nearly half lacking even basic email skills.[i] Poor English, Maths and IT
skills often hold people back from getting jobs, or trap them in a cycle
between a low paid and insecure job and claiming benefits.
Under the Tories many job seekers only
take up literacy and numeracy training three years after they first make a
claim for benefits.
Last month Labour's Shadow Secretary of State for Work and
Pensions, Rachel Reeves MP announced that a Labour government would introduce a Basic Skills Test to tackle
long-term unemployment and low earnings.
Labour would make sure that all new JSA claimants are
assessed within six weeks of a claim – those who need it would be offered
training which they’ll be required to take up or lose their benefits.
To
get the long term unemployed back to work Labour would introduce a Compulsory
Jobs Guarantee for young people out of work and claiming JSA for over
a year, funded by a repeat of the bankers’ bonus tax, and those claiming
JSA for two years or more, funded by
restricting pensions tax relief for very high earners. Those who refuse to take
jobs under the jobs guarantee would lose their benefits.
Labour’s Compulsory Jobs Guarantee and Basic Skills Test are key parts of Labour’s
plan to earn our way out of the cost-of-living crisis by getting more people
into work and helping them to earn a decent standard of living.