The Department for Work and Pensions has set out its blueprint for getting people back into work, after a report by Labour adviser Alan Milburn called for the long-term sick to be forced to seek work.
Milburn, former health secretary and ex-chair of the Social Mobility Commission, presented the Pathways to Work report alongside work and pensions secretary Liz Kendall as she prepared to launch Labour’s welfare reform plans.
His report found that seven in 10 economically inactive people want to work but few have the support to do so. He called for the “crazy” welfare system to be reformed and that Britain had to reduce its “toxic” reliance on immigration.
It also called for local NHS integrated care boards to work more closely with regional mayors and Jobcentres to tackle the health issues that are preventing millions of economically inactive people from returning to work.
In February, the Office for National Statistics revealed that the proportion of working-age people that are economically inactive was thought to be higher than previous estimates. It revised its economic inactivity figure up to 21.9%, compared to an earlier figure of 21.2%, equating to around 9.4 million people.
In her speech yesterday, Kendall stopped short of announcing the government would adopt all of the report’s recommendations, but insisted that the DWP will shift its focus “from a Department of Welfare to a Department for Work” as part of its Back to Work plan.
She said there would continue to be conditions placed on those looking for work and consequences for not doing so, but that the emphasis would be on addressing the factors preventing people from working rather than punishing them.
Welfare reform plans
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Government launches Back to Work plan to tackle economic inactivity
Kendall said: “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.”
The new government has a long-term ambition of reaching 80% employment, she added, with “better quality of work, and higher earnings”.
Local mayors and councils will be empowered to tailor schemes to tackle economic inactivity, the DWP said, and a new national jobs and careers service will help get more people into work.
The government will also assemble a new group of external experts who will provide labour market insight and advice.
Earlier this week, the government announced the launch of Skills England, estimating that skills shortages now account for more than a third of job vacancies.
Shadow work and pensions secretary Mel Stride said the government needed to provide more detail on how it would get people back into work.
He said: “Rather than just spouting out aspirational targets, Labour needs to set out a clear plan for how they are going to get more people into employment and reform welfare.”
Kendall said the DWP’s reforms were part of a cross-governmental approach to get people into work, build their skills and reduce NHS waiting lists.
John Foster, CBI chief policy and campaigns officer, said: “The government is absolutely right to make tackling economic inactivity and boosting personal financial security a key priority.
“Economic inactivity remains too high and it’s clear that more must be done to unlock the potential of the UK’s workforce.
“Ensuring a more joined-up approach to tackling economic inactivity that is more locally responsive and which builds-in efforts to tackle long-term ill-health can help unlock the untapped potential within the labour market.
“Delivering this programme of reform will require close partnership between government and business to enable the meaningful change we all want to see.”
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