Jobcentre reform will be at the centre of the Labour government’s plans to “get Britain working again”.
Tackling the increasing number of people out of work and relying on the state for income has become a major priority of the state, with welfare costs taking up a sizeable portion of government spending.
According to the government, more than nine million people are economically inactive, with 2.8 million on long-term sickness – a number which has risen significantly since the pandemic.
The government will today be publishing its plans to get more people into employment in the form of the Get Britain Working white paper.
The government says its main aim is “to target and tackle the root causes of unemployment and inactivity, and better join up health skills and employment support based on the unique needs of local communities”.
Ill health is noted as the “biggest driver to inactivity”, and “fixing the NHS” is identified as a key task to get people back into work.
The government also points out that £22.6bn was promised in the budget for the health and social care system, with hopes that clearing NHS backlogs will return unwell people to the workforce.
The government says it will in future announce measures to “overhaul the health and disability benefits system so it better supports people to enter and remain in work and to tackle the spiralling benefits bill”.
As part of this, the 20 NHS trusts in England with the highest level of economic inactivity will be given extra capacity to reduce waiting lists.
Liz Kendall, the secretary of state for the Department for Work and Pensions (DWP), said: “To get Britain growing, we need to get Britain working again.
“Our reforms will break down barriers to opportunity, help people to get into work and on at work, allow local leaders to boost jobs and growth, and give our children and young people the best opportunities to get on in life.”
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£240m for reforms
Key among the plans announced today are changes to Jobcentres – with a potential for the service to be rebranded and the name changed down the line.
The “outdated” system will be changed into a “national jobs and careers service”, according to today’s announcement.
The government says staff will be allowed more flexibility to help users of the service, moving away from the current “tick box” culture.
Some £55m will be spent on the transition – linking the scheme with the National Career Service – with the government hoping to use AI to help work coaches, and move more services online.
This package forms part of a greater £240m being pledged by Labour for reform.
A £125m tranche of this will be used to invest in eight areas in England and Wales to provide work, health and skills support, which will then be used as blueprints for the rest of the country.
Those not part of these schemes will be able to claim part of a £15m pot, with the government aiming to hand local authorities more power in employment.
Some £45m will be spent on eight “trailblazer” youth schemes in areas like Liverpool, Tees Valley and the East Midlands.
This is part of the government’s plans to increase the number of young people in work or education, and will target “those most at risk of falling out of education or employment and match them to opportunities for education, training or work”.
There will also be a “youth guarantee” – with 18 to 21-year-olds in England all having access to apprenticeship, education or help to find a job. As part of this, the apprenticeship levy will be reformed.
A review will also be launched into how employers can be better supported to employ people with disabilities.
‘An end to blaming and shaming’
Prime Minister Sir Keir Starmer said: “Our reforms put an end to the culture of blaming and shaming people who for too long haven’t been getting the support they need to get back to work.
“Helping people into decent, well-paid jobs and giving our children and young people the best start in life – that’s our plan to put more money in people’s pockets, unlock growth and make people better off.”
Helen Whately, the Conservative shadow work and pensions secretary, said Labour had made “no attempt to match the £12bn in welfare savings we promised in our manifesto”.
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Paul Nowak, the general secretary of the Trades Union Congress, backed Labour’s plans – but said: “Success will also depend on ministers making the investment that’s needed in health services and quality training.
“Jobcentre staff must have a central role in redesigning their services, and devolution must never come at the cost of staff terms and conditions.”
Louise Rubin, who is head of policy at disability equality charity Scope, said the government must understand the “lack of trust between disabled people and the DWP” – and the potential this has to undermine the reforms.
