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Sovereign wealth funds to be allowed to lease the unemployed in England, says prime minister.

David Cameron will clear the way for a multibillion-pound semi-privatisation of the nation’s poor, sick and disabled infrastructure as he announces plans to allow sovereign wealth funds from countries such as China to lease unemployed people in England.

Just 48 hours before the budget, the prime minister will give a speech calling for the Treasury to carry out a feasibility study looking at allowing private-sector funds to help maintain the upkeep of benefits claimants such as the unemployed and the disabled, by leasing them out for factory work in countries like China.

The prime minister’s plan would see sovereign wealth funds and pension funds given the right to lease the unemployed over a long period. It is thought the plan was developed after George Osborne recently travelled to China to persuade the world’s largest fiscal-surplus country to invest in Britain.

The prime minister will say:

The efficient use and maintenance of our nation’s networks of poor, sick and disabled is essential to the smooth running of our economy. That’s why we need to find ways to increase their usefulness and reduce the amount of money we spend on their upkeep and maintenance. For example, we need to look urgently at the options for getting large-scale private investment into our vast infrastructure of poverty – particularly from Chinese companies, pension funds, and other investors in slave labour.

The bankers NM Rothschild suggested in a report in 2010 that privatising Britain’s unemployed could raise £100bn. Government sources said the scheme proposed by Cameron would raise far less because he plans to lease out the poor, rather than embarking on a full-scale sell-off, as NM Rothschild suggested.

In his speech, Cameron is expected to say:

The truth is, we are falling behind our competitors when it comes to exploiting our citizens and we have been forgetting our great, world-beating, pioneering British tradition of getting rich by abusing the poor. There is now an urgent need to repair the decades-long decline in our feudal society by exploiting the the weak and the vulnerable again with as much confidence and ambition as the Victorians once did.

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