Benefit claimants who fail to look for a job will have their claims closed and their access to free prescriptions and free legal aid taken away under tough new measures. Chancellor Jeremy Hunt has announced a huge new crackdown ahead of the Autumn Statement next week.

Across the UK, there are 6.1 million people claiming Universal Credit, with around 40 per cent working and the others either unemployed or medically unfit and receiving a £390 limited work capability payment on top of their benefits. The figures include 172,000 Universal Credit claimants in Birmingham - with just 51,000 of those in employment - according to the latest statistics from September 2023.

The new Government clampdown will also see people's attendance at interviews and job fairs tracked using digital tools. Chancellor Jeremy Hunt said the measures were necessary to prevent "anyone choosing to coast on the hard work of taxpayers" from receiving benefits.

The changes are part of the Government's £2.5 billion back-to-work plan, which it hopes will help up to 1.1 million people look for and stay in employment. This includes people with long-term health conditions, disabilities and the long-term unemployed.

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Work and Pensions Secretary Mel Stride said that while an expansion of job support schemes would be introduced, tougher sanctions would mean that people "taking taxpayers for a ride" would see their benefits stopped. Mandatory work placement trials will be rolled out, meaning that claimants will be forced to accept a job or undertake work experience to improve their prospects, and those who fail to do so will be hit with an "immediate sanction."

Mr Stride said: "We are rolling out the next generation of welfare reforms to help more people start, stay and succeed in work. We know the positive impact work can have, not just on our finances, but our health and wellbeing too. So we are expanding the voluntary support for people with health conditions and disabilities, including our flagship Universal Support programme. But our message is clear: if you are fit, if you refuse to work, if you are taking taxpayers for a ride – we will take your benefits away."

A new function will be introduced to the Universal Credit service that enables work coaches to digitally track a claimant's attendance at interviews and fairs to give them better evidence of an individual's job search activities and leave those who do not attend open to sanctions.

People who have disengaged from the system will be targeted, with any individuals who are on an open-ended sanction for more than six months and solely eligible for the Universal Credit standard allowance having their benefit claims closed down. This would end their access to other discounts and freebies such as free prescriptions and legal aid.

A new claimant review point for those who remain unemployed after the 12-month Restart programme, which aims to give enhanced support for claimants out of work for at least nine months, will be introduced and Universal Credit claims will be closed if individuals refuse to accept new conditions imposed by their work coach without good reason.

Ministers have said they will expand support for people with health conditions to stay in and find work, including increasing the number of people receiving NHS talking therapy by 384,000 over the next five years. Plans to add another 100,000 people to the Individual Placement and Support (IPS) scheme, which aims to get those with severe mental illness quickly into paid employment and offers continued support once they have found work are also in the package.

Help will also be offered through Universal Support in England and Wales, the Government said, by matching 100,000 people per year with existing vacancies and supporting them in their new roles. The reforms mean that no claimant should reach 18 months on unemployment in receipt of their full benefits if they have not taken "every reasonable step to comply with Jobcentre support", the department said.

Reform of the 'fit note' system – in which doctors fill in forms to provide evidence of the advice they have given about a claimant's fitness to work – will also be explored under the plans. 'Trailblazer trials' will be used to offer better triage, signposting and support to those who have received a doctor's note for a prolonged period of time, and to provide individuals whose health affects their ability to work with easy and rapid access to specialised work, the Treasury said.

Jeremy Hunt said: "We’re serious about growing our economy and that means we must address the rise in people who aren't looking for work, especially because we know so many of them want to, and with almost a million vacancies in the jobs market the opportunities are there. These changes mean there's help and support for everyone, but for those who refuse it, there are consequences too. Anyone choosing to coast on the hard work of taxpayers will lose their benefits."

Newly appointed Health Secretary Victoria Atkins said: "We know that tailored work and health support initiatives can help break down the kinds of barriers that can make finding and staying in a job more difficult for those with mental health conditions. Backing them with further investment means they're more widely available, enables personalised help and will get thousands back to work by overcoming any issues that may be preventing them from fulfilling their career potential."

The announcement forms part of wider plans to grow the economy that are expected to be included in the Autumn Statement next week.