A major crackdown on welfare will see workers who lose their jobs prioritised for benefits over those who never had one. This comes as the unemployment rate in the UK soars, leaving ministers scrambling to get people to work—9.3 million working-age people currently have no job and are not looking for one.

Claimants of the benefit will get greater income protection as opposed to those who have never been employed, The Sun on Sunday revealed. The plan, to be unveiled by Work and Pensions Secretary Liz Kendall, involves the merger of Jobseeker’s Allowance and the Employment and Support Allowance for those with a disability or health condition.

The scheme would offer time-limited support, with all claimants required to be actively seeking work. This comes as Labour pursues a “moral duty to get Britain working again”.

Nearly all disabled people and those with long-term health conditions would have to take part in discussions about employment support under the new benefit.

Exemption for people unable to work would be put in place.

“We have a moral duty to get Britain working again and put welfare spending on a sustainable path,” a government source told the newspaper.

“We will deliver reform with real people and real voices at the heart of the changes — people who for too long have been ‘signed off’ rather than ‘signed up’ to ­support which will help them back to work.”

Of the 9.3 million people out of work, 2.8 million are on long-term sickness benefits, one of the highest rates on the continent.

In 2024, the government spent a staggering £65 billion on sickness benefits, and predictions show the UK would spend £ 1 billion a week by 2030.

The inside source insisted that the Government’s benefits shake-up is “not simply being driven by a desire to balance the books”.

“It’s about giving people the best opportunities to get on in life through meaningful reforms to the system to stop people becoming trapped and dependent on benefits,” they added.

The full plan for the system’s overhaul will be unveiled next week. In the next few weeks, Ms Kendall is expected to publish a Green Paper on the remodel for consultation.