The Work and Pensions Secretary will set out Labour’s ambitions to change the DWP from a “department for welfare” to a “department for work” in a speech on Tuesday.

In the speech in Barnsley, Liz Kendall will lay out plans to tackle economic inactivity and help the Labour Government meet its long-term ambition of reaching 80% employment.

She will say that under the Conservatives, the DWP focused almost entirely on the benefits system and implementing Universal Credit and that not enough attention was given to other issues that determine whether people can work, such as health, skills, childcare and transport.

We need fundamental reform so the department for welfare becomes a genuine department for work

She is expected to say: “Over the last 14 years millions of people have been denied their rightful chance of participating in the labour market, and the hope of a brighter future. They’ve been excluded, left out, categorised and labelled. Britain isn’t working.

“We need fundamental reform so the department for welfare becomes a genuine department for work.”

Local leaders will be able to tailor schemes to get people back into work under the plans.

“We will give local places the responsibility and resources to design a joined-up work, health and skills offer that’s right for local people.

“DWP will support local areas to make a success of this new approach.

“And we will devolve new powers over employment support to catalyse action and change.”

Ms Kendall will announce the Labour Market Advisory Board, a group of external experts to give market insight and advice to the DWP and challenge its plans.

The Work and Pensions Secretary previously announced that the Government will publish a White Paper that builds on Labour’s approach to get people working by creating a new national careers service, creating new work, health and skills plans for the economically inactive and with a youth guarantee for 18 to 21-year-olds.

On Monday, Prime Minister Sir Keir Starmer said he would be setting up a new body, Skills England, to “fire up” the training of more British workers and reduce reliance on foreign labour.