- New policies expected to cost £7bn
- Methods could have unintended consequences
Jeremy Hunt’s Spring Budget was described as a “Budget for wonks” – and inactivity is about as wonkish as it gets. A country’s labour force is made up of three key groups: the unemployed, the employed and the inactive. Whereas the unemployed are actively seeking and available for work, inactive people are not looking for work and unavailable to take it.
But the term ‘inactivity’ can be a misnomer: reasons for inactivity include study, caring responsibility and long-term sickness. A student preparing for exams or a parent looking after young children would probably argue that they feel very ‘active’ indeed. However, when it comes to economic numbers, the distinction is clear. The measurement matters as making more ‘inactive’ people ‘active’ has the potential to boost economic growth. The more people working, the more tax revenue is generated with less money spent on various benefits.