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Tesco Warns UK Is Sleepwalking Into Worklessness as Welfare Costs Climb

Official forecasts project the benefits bill reaching about £406bn by 2030–31.

Overview

  • At a Resolution Foundation event, UK chief Ashwin Prasad said millions are being kept out of work and urged ministers to ease regulatory and hiring cost pressures.
  • He argued businesses have a moral duty to help people back into jobs and called for bolder government action rather than “tinkering at the edges.”
  • Recent data put unemployment at 5.1 percent, a four-year high, with the Bank of England forecasting it could rise further to around 5.3 percent.
  • Reports cited 2.8 million people out of the labour force due to long-term ill health and nearly one million young people outside both work and education, with a separate inquiry led by Alan Milburn.
  • Tesco, which employs about 300,000 people, warned that higher employer costs such as national insurance and minimum wage increases are constraining hiring.