Focus On Jobs, Not Benefits, To Cut Welfare Bill - Thinktank

Addressing the causes of unemployment rather than reducing benefits is the most effective way to lower welfare spending, according to new research from the Joseph Rowntree Foundation (JRF).

The think tank argues that improving access to jobs, affordable housing and healthcare could significantly reduce long-term welfare costs while strengthening economic security.

JRF economists estimate that if the government achieves its target of getting 80% of working-age adults into employment, spending on Universal Credit could fall by around £10 billion — roughly one-eighth of the current cost.

The report challenges political claims that welfare spending is rapidly rising, pointing instead to official projections suggesting non-pension benefits spending will remain broadly stable at about 5% of GDP during the current parliament.

Sam Tims said reducing support alone would not solve underlying economic problems.

He argued governments should focus on creating secure jobs, improving housing availability and strengthening public health systems to reduce financial hardship.

Alongside the research, polling conducted by More in Common involving more than 4,000 voters found strong public backing for longer-term solutions.

According to the survey, 59% supported reducing welfare costs by addressing root causes such as unemployment and housing shortages, while fewer backed direct benefit cuts.

Support was particularly high among people who voted Labour, Liberal Democrats and Green Party during the 2024 general election.

The report recommends measures including more investment in public health, expanding social housing and supporting economic growth in struggling regions.

Researchers also found health-related Universal Credit claims have risen fastest in areas with fewer employment opportunities, particularly former industrial and coastal communities.

The findings come ahead of a youth employment review being led by former cabinet minister Alan Milburn.

The inquiry is examining the growing number of young people not in education, employment or training, with nearly one million people aged 16 to 24 currently affected.

A spokesperson for the Department for Work and Pensions said welfare reforms are designed to help more people enter employment through training, job support and programmes aimed at people with health conditions or disabilities.