Mayors and local leaders will lead a new health and skills drive to crack down on rising numbers of people out of work.

Work and Pensions Secretary Liz Kendall will today warn rising economic inactivity is “holding Britain back” and will say tackling the causes is a top priority for the new government.

Councils and Mayors will be tasked with providing localised and tailored support to get people into employment, under Labour’s plans.

Disabled people and those with health conditions will be supported “by devolving more power to local areas so they can shape a joined-up work, health, and skills offer,” the government said.

Jobcentre Plus and the National Careers Service are to be merged and a “Youth Guarantee” for 18-21 year-olds will see more opportunities for training, an apprenticeship or help to find work offered to all in this age category.

Kendall said rising levels of economic inactivity are unacceptable and that immediate action must be taken.

Some 9.4 million people currently economically inactive and there are 2.8m people out of work due to long-term sickness, and 900,000 young people not in education or employment.

Disability equality charity Scope welcomed the “positive vision” set out by Labour but warned measures to get people into work must not “demonise” those who are too unwell.

James Taylor, executive director of strategy, said: “Tackling economic inactivity by addressing the root causes of ill health and NHS waiting lists, rather than demonising people who are too unwell to work, is a victory for common sense.

“Bringing in a localised approach is a key part of this – local advisers are best placed to advise on local opportunities for disabled people.”

He urged the government to “address other significant barriers disabled people face, such as employers’ negative attitudes, inflexible working practices, and backlogs getting the right support”.

“They must also reassure disabled people who aren’t well enough to work that they won’t be forced into unsuitable jobs, or have vital financial support taken away,” he added.

Former prime minister Rishi Sunak had faced criticism for his own welfare reform plans which campaigners said amounted to a “full-on assault on disabled people”.

Those plans included out of work benefits being stopped if someone does not comply with conditions set by a work coach and a proposal to reform disability benefits – personal independence payments (PIP) – by raising the bar for those receiving them.

Labour has so far remained vague over what it would do to reform PIP or any plans to bring down the disability benefits bill.

But Kendall is expected to announce further details as to how her “back to work” programme will operate.

Ahead of her visit to Leeds, she said: “Economic inactivity is holding Britain back – it’s bad for people, it’s bad for businesses, and it’s bad for growth.

“It’s not good enough that the UK is the only G7 country with employment not back to pre-pandemic levels.

“It is time for change in every corner of the country.

“We’ll create more good jobs, make work pay, transform skills, and overhaul jobcentres, alongside action to tackle the root causes of worklessness including poor physical and mental health.

“Change delivered by local areas for local people, driving growth and delivering opportunity and prosperity to everyone, wherever they live.”

A Conservative Party spokesman said: “Unless action is taken, the working-age welfare bill will rise by more than £20 billion a year by the end of the decade.

“The Labour Party refused to match our measures to save billions of pounds from the welfare bill by the end of the next parliament. They must wake up to the fact that their approach on welfare will come at huge cost to the taxpayer.”