Some on benefits are 'taking the mickey', says minister
Published On Feb 7, 2025, 4:48 AM
Work and Pensions Secretary Liz Kendall has stated that many individuals on benefits want to work, based on a Department of Work and Pensions (DWP) survey revealing that 200,000 benefit claimants are ready to return to work with the right support. The report highlighted that while a significant portion of health and disability claimants feel unable to work, many with mental health conditions are optimistic about their future ability to work. The government is concerned about the rising welfare costs, projected to reach £100 billion before the next general election, and is looking to reform the benefits system to encourage more young people to enter the workforce. Kendall is expected to present a policy paper on welfare reform soon, and Prime Minister Sir Keir Starmer supports the notion that those capable of working should seek employment, albeit with necessary support.
Stock Forecasts
AMZN
Positive
The news regarding welfare reform and the potential policies aimed at encouraging employment among benefit recipients could positively impact companies that operate in sectors where hiring may see an influx due to government support. These could include retail and service industries, which typically employ a large number of workers, including younger individuals.
TGT
Negative
Pressure on the government to curb rising welfare spending may lead to increased scrutiny on companies that rely heavily on governmental support for employment initiatives. Any backlash against businesses perceived as not contributing to economic recovery could negatively affect their stock performance.
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