BRITAIN is on course for the lowest benefits rates since records began, a new report found as the Tories were yesterday condemned for announcing harsher welfare sanctions in an ugly resurgence of its austerity-era “shirker” rhetoric.

Chancellor Jeremy Hunt told the Conservative conference the government is replacing the work capability assessment and examining the sanctions regime.

Save the Children UK branded his claims that 100,000 people are leaving the labour market every year for a life on benefits were based on a “complete fallacy.”

The charity’s head of child poverty Becca Lyon said:  “In fact, the so-called ‘safety net’ of universal credit is so low that 90 per cent of low-income households are regularly going without essentials like regular meals, a hot shower, or heating.”

Disabled People Against Cuts founder Linda Burnip told the Morning Star: “The resurgence of the benefit shirker rhetoric and changes planned to force disabled people into work of any kind regardless of their ability to work are extremely frightening and reminiscent of the Nazis’ ‘useless eaters’ agenda.”

But the Chancellor’s speech came as the Institute for Public Policy Research (IPPR) found Britain is on track for its lowest ever benefit levels by 2030, as it called for a renewed purpose for social security.

The think tank said out-of-work support is set to fall to 11.2 per cent of weekly median pay by the end of the decade — just over half the 20.1 per cent of weekly median pay the benefit was in 1971 — and that is even if benefits are uplifted by inflation every year.

But Mr Hunt is looking at holding them down below inflation as Prime Minister Rishi Sunak seeks to make pre-election tax cuts and draw dividing lines from Labour.

Melanie Wilkes, IPPR associate director for work and the welfare state, told the Star: “Our threadbare benefit system is a last resort for most people, and an essential lifeline to those who get it. 

“The sad truth is that despite what the Chancellor said in his conference speech, our report finds we are on course for the lowest benefit rates for those out of work for many decades, compared to the average pay of those in work. That’s hardly a disincentive for people to look for work.” 

She said Mr Hunt’s speech was referring to people who would get just £85 per week in support, adding: “Rather than doubling down on an approach that isn’t working, the government should rethink the role of jobcentres to better support people to find opportunities for work and training that reflect their skills, experiences and personal circumstances.”

The IPPR is today calling for a new cross-party mission for social security, with an independent body and annual report to hold government to account.

Henry Parkes, principal research fellow at IPPR, said: “Benefits should provide enough to live on but they have never actually been calculated in relation to the costs people face day to day.

“This has only been made worse by policies like the benefits cap, the two-child limit and a sharp reduction in support with housing. 

“It’s time to rethink the role of our social security system. At the moment, it’s not providing enough for families to survive, and that is bringing further costs to us as a society and economy.” 

Public and Commercial Services (PCS) union general secretary Mark Serwotka said: “Benefit sanctions have been shown time and again to be ineffective at getting jobless people into work.

“Instead, they reduce those affected to poverty and ill-health. 

“This disastrous, punitive policy is an attempt by a mean-spirited Chancellor to shift attention from the government’s economic failings and an attempt to inflict more misery on already poor people to boost their vote.”

A spokesman for Momentum said the Tories’ austerity and privatisation agenda has broken Britain.

“With no answers, it’s little surprise Jeremy Hunt and Rishi Sunak are falling back on the age-old Tory tactic of divide-and-rule, blaming the poor and the disabled,” he added.

TUC general secretary Paul Nowak said Tory proposals to raise the hourly national living wage to £11 an hour were “just another reheated government announcement,” adding: “It’s time for a roadmap to a £15 minimum wage and decent work for everyone. The Chancellor’s speech failed to deliver that.”