London Daily

Focus on the big picture.
Tuesday, Jun 30, 2026

Part-time workers to face benefit cuts if they don't look for more work

Part-time workers to face benefit cuts if they don't look for more work

Chancellor Kwasi Kwarteng will announce reforms to the welfare system as part of his mini-budget on Friday, including more support for over-50s to get back into employment.
People working part-time will face cuts to their benefits if they do not look for extra hours, the chancellor is set to announce.

As part of his mini-budget on Friday, Kwasi Kwarteng will say claimants working up to 15 hours a week on the National Living Wage will have to take "active steps" to increase their earnings or face a reduction to their Universal Credit payments.

This would include regularly meeting with a work coach, applying for jobs, attending interviews or increasing their hours.

"People who don't fulfil their job-search commitments without good reason could have their benefits reduced in line with existing benefit sanctions policy," the Treasury said.

The move will affect around 120,000 claimants and is described as a "gradual expansion" from the current 12-hour threshold to bring more people into the "Intensive Work Search Regime".

UC claimants aged over 50 will also get targeted sessions from work coaches to help with the "rising economic inactivity" in the age group, which the Treasury said was "driving up inflation and limiting growth".

Mr Kwarteng described his plan, due to come into force in January 2023, as a "win-win", saying: "It boosts incomes for families and helps businesses get the domestic workers they need, all while supporting economic growth."

The government also believes it will help fill the 1.2 million vacancies across the UK and claim the extra support for the over-50s could boost GDP by up to one percentage point.

The Chancellor added: "Our jobs market is remarkably resilient, but it is not perfect. While unemployment is at its lowest rate for nearly fifty 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."

The new benefit rules will be introduced across England, Wales and Scotland, with the government working with Northern Ireland "to determine the most suitable way to deliver support in due course".

Certain groups will also remain exempt from the sanctions, including people who are unable to work due to long-term sickness or a disability.

But shadow work and pensions secretary Jonathan Ashworth attacked the plan, tweeting: "So Tory ministers think the reason we have over a million vacancies is because the low paid aren't working hard enough and need to be threatened with sanctions, but bankers needs bumper bonuses?

"We need a serious plan to support people to return to work and increase labour supply."

It also comes as the Joseph Rowntree Foundation urges the government to increase benefits in line with inflation for low earners and those out of work to help them navigate the cost of living crisis.

The group's chief economist, Rebecca McDonald, said "hard-pressed families can't afford to wait to see if the benefits of tax cuts [also expected to be announced by Mr Kwarteng on Friday] trickle down", adding: "They need help now.

"Low income families not having enough money in their pockets to spend on their local high streets will hold back the economic growth the government wants to see.

"Additional support to them will be ploughed back into the economy as they are able to buy the essentials they need. It will support businesses but most importantly, allow people to keep healthy this winter by having enough to live on."
Newsletter

Related Articles

0:00
0:00
Close
Global Billionaire Numbers Rise 13 Percent Amid Artificial Intelligence Stock Boom
Body of Fifteen-Year-Old Boy Recovered from Manchester Reservoir
Major Rail Disruption in UK After Cows Stray Onto Intercity Tracks
UK Launches National Campaign to Reduce Water Consumption After Heatwave
Foreign Secretary David Lammy Raises Case of UK Woman Death with US Authorities
Shetland Islands Council Approves Subsea Tunnel Plans Linking Major Islands
Telegraph Media Group Takeover by German-Led Consortium Completed
Resident Doctors in England Accept Government Pay and Conditions Deal
Andy Burnham Sets Out Ten-Year Economic Vision Amid Labour Leadership Debate
Asylum Seekers in UK Face £10,000 Contribution Requirement Under New Law
UK Government Moves to Break Apple and Google App Store Dominance
New UK Steel Tariffs and Import Quotas Aim to Shield Domestic Industry
Damning Report Exposes Failures in Maternity and Neonatal Care Across England
Government Data Reveals Five Billion Pound Shortfall in UK Defence Budget
Prime Minister Keir Starmer Unveils Three Hundred Billion Pound Defence Investment Plan
UK Crime and Policing Act 2026 Comes into Force with New Justice System Reforms
UK Prime Minister Hosts NATO Secretary General Mark Rutte for Security Talks at Downing Street
UK Tightens Oversight of Emissions Trading Scheme Through New Ministerial Directions
UK Issues Statement at UN Security Council on Violence in the West Bank
UK Environment Agency Clears Illegal Waste Site in West Yorkshire After Court Action
UK Resident Sentenced for Fraudulently Claiming £30,000 in Covid Business Loans
UK Launches Taskforce to Help Young People Claim Dormant Child Trust Fund Savings
UK Gambling Commission Fines Betfred Operator Petfre Gibraltar £900,000 Over Social Responsibility Failures
UK Appoints Lord Collins as Global Envoy for LGBT+ Rights
UK Expands Detention Capacity to Support Removal of Foreign Criminals and Failed Asylum Seekers
UK Resident Doctors End Strike Action After Accepting Government Pay Deal
UK Tightens Sentencing for Domestic Killings with 25-Year Starting Point for Murder of Partners
UK to Build at Least Six New Royal Navy Warships Under Expanded Defence Programme
UK Government Unveils £5 Billion Defence Investment Plan Focused on Drones and Autonomous Warfare Systems
UK Economy Records 0.6% First Quarter Growth as Services and Manufacturing Drive Steady Expansion
Welsh Government Unveils New Agricultural Support Plan Focused on Sustainability and Rural Growth
UK Teacher Recruitment Shortfalls Continue in Science and STEM Subjects
Police Scotland Expands Cybercrime Investigations Amid Rising Digital Fraud
UK Universities Warn of Risk to International Student Numbers Amid Visa Changes
UK Defence Ministry Pivots Toward Greater Domestic Military Procurement
UK Launches National Rail Review After Repeated Service Disruptions
Northern Ireland Assembly Debates Long-Term Funding Settlement for Public Services
UK Accelerates Approval of North Sea Offshore Wind Projects to Expand Energy Capacity
UK Retail Sales Fall as Households Cut Discretionary Spending in June
UK Expands Border Intelligence Cooperation with France and Belgium to Target Smuggling Networks
Scottish Government Faces Pressure Over Delays in Major Infrastructure and Transport Projects
UK Launches Multi-Billion-Pound Artificial Intelligence Infrastructure Investment Fund
National Health Service Warns of Continued Emergency Department Strain Across England
Bank of England Signals Interest Rate Hold as Wage Growth Keeps Inflation Elevated
UK Sets Emergency Fiscal Strategy as Inflation Pressures and Weak Manufacturing Growth Persist
UK Launches New Measures to Improve Safety Standards in Night-Time Venues
UK Tightens Import Rules for Low-Value Parcels to Support Domestic Retailers
UK Launches £85 Million Obesity Care Programme Targeting Early Intervention Projects
UK Commits Up to $26 Million to Ebola Response in Democratic Republic of Congo
Security Industry Authority Flags Safety Failures in Night-Time Economy Inspections
×