Gordon Brown laid the ground for radical measures to retrain the British workforce yesterday as he promised sweeping welfare reforms aimed at getting people into the workforce.
Speaking at the CBI conference in London, the Prime Minister warned business leaders the "uncomfortable" truth was that since many jobs currently filled by British workers were becoming redundant, millions could be left on the scrap heap.
As he described a future without reskilling and retraining in apocalyptic terms, he promised policies to help the out-of-work undertake training and the unskilled to improve their promotion prospects.
Risking the wrath of the unions who fear that the government's plans will stigmatise some people, Mr Brown gave the green light to far-reaching changes to the welfare reform system which will cover lone parents and anyone unemployed for more than six months.
Under a pilot scheme, unskilled jobless benefit claimants will be forced to enter training when they have been out of work for six months, and a skills screening test will be launched to iden-tify numeracy, literacy and language problems that could be barriers to getting a job.
A new adult advancement service will be set up to carry out a mandatory skills audit of those who have been unemployed for six months.
Mr Brown revealed there would be far-reaching reforms of the welfare state and the education system which would help "move claimants from passive recipients of welfare benefit to active job and skill seekers".
"Of today's six million unskilled workers in Britain, we will soon need only half a million - over five million fewer," he said.
"We have nine million highly qualified workers in Britain, but the challenge of the next 10 years is that we will need 14 million - five million more," the Prime Minister added.
Mr Brown said private firms and the voluntary sector will play a bigger role in helping people move from welfare to work.
Later, Peter Hain, the Work and Pensions Secretary, said the government would pilot making the training compulsory as well. Unison was among the unions to criticise the announcement, claiming that private firms were only interested in lucrative contracts with no risks.
Mr Hain will not want to offend the unions but he will give more information today on how the private sector and charities will play a central role in JobCentre Plus functions.
The so-called 16-hour rule, which restricts people over the age of 19 from claiming housing benefit if they study for more than 16 hours a week, will also be reformed.
John Denham, the Skills Secretary, announced a new "careers and advancement" service to help people train - whether in or out of work.
Susan Anderson, director of human resources policy at the CBI, said: "We can't afford to have millions of people on unemployment and incap-acity benefits who want to work and who, with the right support, could return to work. Firms need to be reassured that these people are getting the training they need."
The TUC said it believed the first consideration for lone parents was the best interests of their child and in the absence of affordable childcare and flexible work, many could feel unable to take a job.
Brendan Barber, the TUC's general secretary, said: "Stigmatising lone parents is more likely to increase child poverty than employment.
"Forcing lone parents with children as young as seven to be available for work without affordable childcare and flexible working in place could leave parents unable to work and without benefits."
Danny Alexander, the LibDem work and pensions spokesman, said: "Some of these changes are welcome, but they do not add up to the radical welfare shake-up needed to help the millions of unemployed people back to work.
"The skills health check is welcome, though many people will wonder why claimants' skills have not been consistently assessed and supported up until now."
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