Hunt urged to use £2bn underspend to help jobless

JEREMY HUNT is under pressure to release up to £2 billion of unspent skills funding so it can be used to bankroll a new back to work drive.

The Chancellor has been warned not to “pocket” the money, with the number of jobless soaring and businesses struggling to find staff.

Employment schemes are coming in way under budget despite the labour shortage, with nine million workingage people economically inactive.

A report by the National Audit Office published today reveals the flagship Restart programme is set to underspend by £1.2 billion.

Figures from the Learning and Work Institute show the Plan for Jobs, launched in July 2020, is on course to be more than £2 billion cheaper than expected. It comes amid growing concern about the number of economically inactive, and particularly a surge in over-50s leaving the labour force.

There are 1.7 million who are jobless but say they want to work, including many disabled and young people with health problems.

Mel Stride, the Work and Pensions Secretary, who is conducting a review into helping the unemployed back into work, said officials were looking at using the underspend for new outreach and retraining programmes aimed at the economically inactive.

The Treasury ring-fenced the Restart budget, meaning it would have to agree to unlock that £1.2 billion rather than pocket the shortfall.

Jonathan Ashworth, Labour’s shadow work and pensions secretary, said the money must be used to tackle economic inactivity. “Instead of more dither from Rishi Sunak, we need action,” he said.

Stephen Evans, the director of the Learning and Work Institute, warned agsinst pocketing the underspend, adding: “The shortage of workers is holding back our economy and it’s storing up problems for the longer term, so this would be a really good investment.”