Cut taxes and benefits to help unemployed men in Britain find a job, IMF says

Cutting taxes and benefits would encourage millions of unemployed men to find work and help solve the unemployment crisis, a leading economic think tank said yesterday.

In a hard-hitting report, the International Monetary Fund (IMF) said there is an ‘urgent need for policies’ to put more people into work and boost growth.

Shocking figures last month showed the number of Britons who are unemployed but not looking for a job has risen to a record 9.25 million.

More than a fifth of UK adults aged 16 to 64 are financially inactive, according to the Office for National Statistics (ONS).

The IMF said men would be encouraged back into the workforce by cutting government benefits and reducing taxes on income.

Research also found that improved childcare and education would increase the number of women in jobs, while raising the retirement age would keep older workers in employment for longer.

Shocking figures last month showed the number of Britons who are unemployed but not looking for a job has risen to a record 9.25 million (stock image)

The IMF report was not specifically about Britain, and high levels of economic inactivity are a global problem.

The think tank has previously been blasted for being down on Britain’s economy.

But its latest findings could be seen to be relevant to Britain given the millions of Britons out of work.

“It’s nice to see some real meaning from the IMF for a change,” said former Conservative Party deputy leader Brendan Clarke-Smith. ‘I couldn’t agree more with the idea of ​​tackling unemployment by cutting benefits, and our own reforms from the Department for Work and Pensions have certainly been very welcome.’

Of the 9.25 million people who are economically inactive in the UK, 2.8 million are on long-term sick leave – the most since the 1990s. Students account for 2.6 million, 1.6 million people look after their home or family and 1.1 million Britons have taken early retirement.

A spokesman for the Department of Economic Affairs said: ‘Since Covid we seem to have seen a benefits-enabled disengagement from work by some groups.

‘A change in the incentives could well lead many to put concerns about personal problems aside and actively look for work.’

There are around 700,000 more claims for benefits than before the pandemic, ONS figures published last month showed. The fastest growing cohort is those suffering from mental health problems – accounting for around half the jump in numbers since the pandemic.

The UK Secretary of State for Work and Pensions, Mel Stride, leaves 10 Downing Street

Work and Pensions Secretary Mel Stride last month announced plans to get 150,000 people signed off with mild mental health problems back into work.

He said the nation’s response to tackling mental health problems may have ‘gone too far’ with ‘life’s normal anxieties’ being labeled as illnesses.

“Maybe it’s an old-fashioned belief – but I think it’s one that’s coming back into fashion – that work is good for you,” he told Radio 4’s Today programme.

The Taxpayers’ Alliance said: ‘The UK’s tax system reduces the incentive to work hard for everyone: young and old, men and women.

“Frozen tax caps combined with crippling levels of corporate taxation and persistent inflation mean pay packets look set to shrink.”

Sir John Redwood said the IMF was right to call for lower taxes – but not to cut benefits.

The veteran Tory MP said: ‘I agree that we need to cut taxes to get men back into work, but not by cutting benefits.

‘We need to reduce reliance on low-wage immigration and increase wages to get local people into jobs.’