London Daily

Focus on the big picture.
Monday, Jun 23, 2025

UK's Hunt says his budget will get more people into work

UK's Hunt says his budget will get more people into work

British finance minister Jeremy Hunt said he would use this week's budget plan to remove barriers, including high childcare costs, that are stopping people from working and causing a major problem for employers after the COVID-19 pandemic and Brexit.
Hunt - who reiterated he would not rush to cut taxes to speed up the slow economy - pledged action on the labour market problems that also include high numbers of people retiring early or unable to work due to long-term sickness or disabilities.

"I will be systematically going through all the areas where there are barriers that stop people from working who want to, so that we can help people get back to work and fill those vacancies for our businesses," he told Sky News on Sunday.

Britain is the only Group of Seven nation where the economy has not yet returned to its pre-coronavirus pandemic size, with staff shortages weighing heavily on many firms.

The Treasury said late on Saturday that Hunt would offer financial incentives for parents with young children, disabled people and others to rejoin the workforce in his tax and spending budget plan on Wednesday.

There are more than 1 million job vacancies in Britain, while one in five working-age people is either out of a job or not seeking one. The government said it hopes the announcements this week will get hundreds of thousands of people into work.

The new measures will include the government paying childcare costs up front for low-income parents rather than in arrears, and increasing such payments, the Treasury said.

"That is a big deal and very welcome – removing a cash flow barrier to some entering work," said Torsten Bell, chief executive of the Resolution Foundation - a think-tank which focuses on issues faced by low-income households.

Hunt also plans to allow disabled people and those with long-term health conditions to work without removing their supplementary financial support, the Treasury said.

More training places will be made available for the over-50s to learn skills in areas such as construction and technology.

In households with two adults on income support, both will now be obliged to look for work rather than just one of them, the Treasury said.

Hunt rejected suggestions that the government should significantly loosen its post-Brexit immigration rules to ease the labour market squeeze, saying it wanted controlled legal migration over "filling every vacancy in our businesses with uncontrolled migration."

He is under pressure from many lawmakers in his Conservative Party to reverse a sharp rise in corporation tax which is due in April, helping to put Britain on course for its highest tax burden in 70 years.

He told broadcasters on Sunday that he wanted to cut taxes over the long term but once again signalled he would not be making any big moves on Wednesday.

"A Conservative government will always cut taxes when we can, but we won't run out of money. We will be responsible with the public finances," he told Sky News.

Hunt - who was rushed into the British Treasury in October to stop a bond market slump caused by the unfunded tax cut plans of former Prime Minister Liz Truss - said he would also seek to incentivise investment by businesses.

"What you will also see on Wednesday is that we have a plan to tackle the biggest problems we face as a country whether it's a lack of investment, whether it's businesses not able to recruit," Hunt told Sky News.
Newsletter

Related Articles

0:00
0:00
Close
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
BBC Demands Perplexity AI Immediately Stop Using Its Content
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
×