DWP reforms

Liz Kendall recently set out how Britain’s system of employment support must be fundamentally reformed to tackle the “most urgent challenge” of spiralling economic inactivity.

In a Department for Work & Pensions press release issued 23 July 2024 it was announced:

• Work and Pensions Secretary Liz Kendall will use landmark first speech to set out the Government’s plans to reverse dire labour market inheritance and drive up Britain’s employment.
• Major new reforms will be at heart of Government’s ambition to reach an 80% employment rate, with a white paper on getting Britain working again.
• Kendall set to empower local leaders to tackle economic inactivity, alongside a new Labour Market Advisory Board to help drive change and get Britain working again.

Ms Kendall will argue:

“The fundamental problem we face is that the current system of employment support is designed to address the problems of yesterday – not today, tomorrow and beyond.

“She will say over the last 14 years the DWP has focused almost entirely on the benefits system, and specifically on implementing Universal Credit, and that “nowhere near enough attention has been paid to the wider issues – like health, skills, childcare and transport – that determine whether people get work, stay in work and get on in work.

“She will call time on the approach of the previous government and instead seek employment opportunity unleashed for all as part of the government’s long-term ambition to reach 80 per cent employment, with better quality of work, and higher earnings.

“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.

“We’ll pursue an ambitious plan alongside the government’s goals to raise productivity and living standards and to improve the quality of work. To get Britain growing again, get Britain building again and get Britain working again.”

As part of her drive to tackle economic inactivity, the Secretary of State will also announce a new group of external experts who will provide labour market insight and advice to drive change throughout the system.

The Labour Market Advisory Board, which will be chaired by Paul Gregg – Former Director of the Centre for Analysis of Social Policy at the University of Bath – is expected to meet quarterly and will provide advice to the Work and Pensions Secretary and offer insight, expertise, and challenge to the department’s plans.

The speech follows the announcement by the Work and Pensions Secretary, that the Government will, as part of the Growth Mission, publish a White Paper which will build on manifesto commitments of a three-pillared approach to support people into work:

• A new national jobs and career service to help get more people into work, and on in their work.
• New work, health and skills plans for the economically inactive, led by Mayors and local areas.
• A youth guarantee for all young people aged 18 to 21.

It forms part of a cross-government approach to help people into work, including the launch of Skills England, and cutting NHS waiting lists to build the healthy society needed for a healthy economy.