Millions of people not working is ‘unacceptable’ says Labour

It said the guarantee would help “to prevent young people becoming excluded from the world of work at a young age”.

According to the Office for National Statistics, about a quarter of people of working-age – nearly 11 million people – do not currently have jobs.

About 1.5 million are classed as unemployed, meaning they are unable to find a job.

The rest are considered to be economically inactive, with the number in this category rising as more people take early retirement, face sickness, or cannot afford childcare.

“Economic inactivity is holding Britain back,” Ms Kendall said. “It’s not good enough that the UK is the only G7 country with employment not back to pre-pandemic levels”.

The Recruitment and Employment Federation, which represents the recruitment sector, said the new government’s “early start” on reducing joblessness was “vital”.

“The rewards are tantalising for the government if it can harness the personal choices individuals make in needing and wanting flexible work opportunities,” said the REC’s deputy chief executive, Kate Shoesmith.

Disability equality charity Scope praised the government’s “positive vision” but said it should reassure disabled people who are unable to work “that they won’t be forced into unsuitable jobs, or have vital financial support taken away”.

In May, Labour criticised former prime minister Rishi Sunak after he said that claiming benefits had become a “lifestyle choice” and that he would tackle a culture of “sick notes”.

On Thursday, the Conservatives said Labour had “refused” to match its measures to save billions of pounds from the welfare bill by the end of the next parliament.