A ‘groundbreaking’ new plan by the DWP aims to get unemployed or long-term sick Brits back into work – to support the government’s goal to get the UK to an 80% employment rate
Unemployed or long-term sick Brits may be returning to the workforce in a “groundbreaking” new plan unveiled by the Department for Work and Pensions.
The DWP’s White Paper is set to be released this Autumn, with plans to get more people back into work. The Labour Government is being advised by officials to address what’s been dubbed “the greatest employment challenge for a generation”. An initial discussion with the Work and Pensions Secretary, Liz Kendall MP, took place on Monday.
Kendall has assembled a new Labour Market Advisory Board made up of specialists working in a number the fields – from business and industrial relations to academia. The gathering saw professionals pitch new strategies to support government activities focused on tackling economic inactivity.
They spoke about what solutions would best solve the underlying reasons Brits are saying out of work, such as suboptimal physical and mental health conditions. The UK is currently the only G7 nation to not see its employment and inactivity rates rebound to pre-pandemic levels.
Work and Pensions Secretary, Liz Kendall MP, said: “Spiralling inactivity is the greatest employment challenge for a generation, with a near record 2.8 million people out of work due to long-term sickness. Addressing these challenges will take time, but we’re going to fix the foundations of the economy and tackle economic inactivity.”
“The board’s knowledge, expertise and insight will help us to rebuild Britain as we deliver our growth mission, drive up opportunity and make every part of the country better off.”
Data released by the Office for National Statistics (ONS) on Tuesday shows that between May and July this year, the unemployment rate in Scotland for those aged 16 and over stood at 4.2%, slightly higher than the overall UK unemployment rate of 4.1%.
Paul Gregg, who chairs the Labour Market Advisory Board, commented: “Having studied the UK’s labour market across several decades, it is clear that the current labour market faces a deep-seated set of challenges. We have seen a sharp increase in economic inactivity and long-term sickness, most notably in our young people post-pandemic.”
“Further, real wage growth has been heavily suppressed for 15 years hitting living standards and government tax revenues. Reversing these trends will be key to ensuring the long-term prosperity of the UK’s labour market.”
The upcoming White Paper will see the Secretary of State announce her plans to address inactivity through tailored work, health, and skills plans. It is also set to introduce a new promise to youths aged 18 to 21, along with a transformative approach to jobcentres, integrating them with the National Careers Service.
