A raft of new measures to get a number of groups back into work is set to be announced in the Chanceller's spring Budget this week.

The policies aim to bring the over-50s, long-term ill and disabled and benefit claimants into work as the Government aims to tackle economic 'inactivity'.

As part of his "Back-To-Work Budget", it is reported that Jeremy Hunt will announce the axing of the system currently used to assess eligibility for sickness benefits.

The Work Capability Assessment is set to be scrapped in what has been called the biggest reform to the welfare state in a decade.

This would mean claimants can continue to receive payments after they return to work.

The system is expected to be replaced with an assessment that asks claimants what kind of jobs they think they could do, seeing disability advocates and charities warn against the move.

Over 50s to be encouraged to 'unretire' to curb economic inactivity

The Chancellor of the Exchequer will also set out plans to encourage those aged over 50 to return to work through an expansion of skills training.

This comes after The Resolution Foundation said that while the majority of the rise in economic inactivity was from the over-50s, plans to get people to unretire were unlikely to be successful.

Jeremy Hunt to announce changes to Universal Credit childcare allowance in spring Budget

The Northern Echo: (PA) Jeremy Hunt is to announce changes to childcare allowance to get more parents into work(PA) Jeremy Hunt is to announce changes to childcare allowance to get more parents into work (Image: PA)

In a bid to get more Brits back into work, Mr Hunt also suggested raising the maximum Universal Credit childcare allowance after campaigners said UK nursery care was among the most expensive in the world.

The UK Government will also pay this childcare support upfront rather than after the fact, helping to save parents from going into debt.

Jeremy Hunt wants the spring Budget to be a 'back-to-work Budget'

Jeremy Hunt said: "For many people, there are barriers preventing them from moving into work - lack of skills, a disability or health condition, or having been out of the jobs market for an extended period of time.

"I want this back-to-work Budget to break down these barriers and help people find jobs that are right for them.

"We need to plug the skills gaps and give people the qualifications, support and incentives they need to get into work. Through this plan, we can address labour shortages, bring down inflation, and put Britain back on a path to growth."

Labour's Shadow Work and Pensions Secretary Jonathan Ashworth said: "Over recent months, Labour has outlined welfare reforms to get Britain back to work and now the Tories are following our lead."

The Chancellor's spring Budget will be announced on Wednesday, March 15 on BBC Two from 12:30 pm.