![\"Rachel](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/03\/6815248.jpg\" "\\"Rachel")
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Tories claim Chancellor Rachel Reeves is presiding over an economic emergency (Image: PA)<\/p>\n
Britain’s worklessness \u201cemergency\u201d means the country is losing more than \u00a3443billion a year in economic output, according to a new analysis. It is claimed the amount lost to the economy<\/a> by people who are not in work and receive Universal Credit<\/a> is the equivalent of \u00a333,900 for every working household \u2013 up by roughly \u00a38,500 since Labour took power.<\/p>\n Kemi Badenoch\u2019s party has warned of an \u201ceconomic emergency\u201d with the annual economic loss from claimants not in work going up by more than \u00a3111billion since Rachel Reeves<\/a> became Chancellor.<\/p>\n Shadow Work and Pensions Secretary Helen Whately said: \u201cThe true cost of worklessness is the lost opportunity for individuals, who are missing out on skills, experience and purpose.\u201d<\/p>\n The Tories<\/a> said the number of UC claimants not in work has gone up by more than 1.4 million since Labour were elected.<\/p>\n Ms Whately said the loss in output of nearly \u00a334,000 per working household showed the \u201ccatastrophe of this failing Labour Government<\/a>\u201d, adding: \u201cIt reflects lost opportunity for individuals and lost economic activity for the country, with the damage rippling across the wider economy. Labour are killing jobs and weakening the incentives to work.\u201d<\/p>\n However, the Department of Work and Pensions accused the Conservatives<\/a> of a \u201cmisleading\u201d interpretation of the figures.<\/p>\n A spokesperson said: \u201cThese claims are misleading. People moving from old legacy benefits onto Universal Credit \u2013 nearly 80% \u2013 accounts for the vast majority of the increase in UC over the past year. This is a transition we inherited from the previous Government, alongside a system that writes people off.<\/p>\n “This Government is determined to fix this. That\u2019s why we\u2019re removing the financial incentives in Universal Credit that encourage inactivity, and as part of our wider plans to Get Britain Working, we have redeployed 1,000 work coaches to help thousands of sick and disabled people who were previously left without contact for years.\u201d<\/p>\n<\/p>\n Read more: John Lewis legend warns of Keir Starmer and Rachel Reeves killing our economy <\/a><\/p>\n Read more: Rachel Reeves ‘in denial’ as she fights to save her job with landmark speech <\/a><\/p>\n The Conservatives claim Labour\u2019s shock increase in employers\u2019 National Insurance has made it harder for young people in particular to get a job. This tax hike, alongside increases in workers\u2019 rights, are blamed for making bosses more reluctant to hire.<\/p>\n Shadow Communities Secretary Sir James Cleverly<\/a> claimed \u201cmore and more people are choosing welfare at the taxpayer\u2019s expense rather than working\u201d.<\/p>\n
![\"Kemi](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/03\/6815246.jpg\" "\\"Kemi")
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