A week into her new job, work and pensions secretary Liz Kendall has doubled-down on pre-election pledges to tackle rising economic inactivity.
On her first ministerial trip, to visit a jobcentre in Leeds and meet West Yorkshire mayor Tracy Brabin, DWP’s Kendall was resolute about implementing the new government’s Back to Work Plan.
The three main pillars of the plan include the creation of a national jobs and career service to get more people into work; new work, health and skills plans for the economically inactive, to be led by mayors and local areas; and the launch of a youth guarantee for all young people aged 18 to 21.
‘Unacceptable’ levels of economic inactivity
Figures show that 9.4 million people are economically inactive, a record 2.8 million people are out of work due to long-term sickness, and 900,000 young people (as many as one in eight) are not in education, employment or training.
Kendall called rising levels of economic inactivity “unacceptable” and backed immediate action.
She said: “Growth is our number one mission and, as the chancellor [Rachel Reeves] said, our Back to Work Plan is central to achieving our plans.
“Economic inactivity is holding Britain back – it’s bad for people, it’s bad for businesses, and it’s bad for growth.
“It’s not good enough that the UK is the only G7 country with employment not back to pre-pandemic levels.”
Jobcentre overhaul
She said: “It is time for change in every corner of the country.
”We’ll create more good jobs, make work pay, transform skills, and overhaul jobcentres, alongside action to tackle the root causes of worklessness including poor physical and mental health.”
DWP plans will see the merging of Jobcentre Plus and the National Careers Service in a bid to get more people into work and support people seeking better opportunities.
The Youth Guarantee aims to provide more opportunities for training, an apprenticeship or help to find work for all young people aged 18-21 years old, and to prevent young people becoming excluded from the world of work at a young age.
More disabled people and those with health conditions will be supported to enter and stay in work, by devolving more power to local areas so they can shape a joined-up work, health, and skills offer that suits the needs of the people they serve.
Over 50s need targeted support
However, Emily Andrews, deputy director for work at the Centre for Ageing Better, said that the government’s priorities of reigniting growth and raising productivity will be “unachievable” without improving the employment prospects of workers aged 50 and over.
Andrews said the minister was right to highlight the high numbers of economically inactive people in the working-age population – 40 percent of whom are 50 or older. She agreed it is hugely damaging that the UK is the only G7 country with employment not back to pre-pandemic levels.
But she said: “More specifically it is older workers’ participation in the labour market that has been disproportionately impacted since the pandemic and which has not bounced back like it has for other age groups. And this is why this age group needs specific, targeted support.
“Creating a more localised, open approach to employment support – with high standards of support for the over 50s – is the right way to go. Our own research and testing shows that explicitly-targeted, localised support could make a big difference.
“If the government gets these reforms right, it could go a long way to helping to meet their mission to kickstart economic growth. Centre for Ageing Better analysis shows that closing the employment gap for 50 plus workers and other age groups could increase gross domestic product by at least £9 billion a year and boost income tax and national insurance contribution revenues by £1.6 billion a year.”
Cabinet colleagues
Kendall’s visit and comments come days after the chancellor outlined the government’s first steps to securing sustained economic growth as the only route to improving the prosperity of the country and the living standards of working people.
Cabinet colleague and health secretary Wes Streeting also recently set out how cutting NHS waiting lists will get Britain back to health and back to work. He said that by taking bold action on public health the government can build the healthy society needed for a healthy economy.
