On a visit to Leeds Work and Pensions Secretary Liz Kendall will today (Thursday 11 July) confirm the Government’s commitments to its manifesto Back to Work plan, and say tackling economic inactivity is central to the UK Government’s number one mission of growing the economy.
New Work and Pensions Secretary today sets out how the Government’s back to work plan is critical to growing the economy
On a visit to Leeds with Ministerial team, Liz Kendall identifies tackling economic inactivity as top priority, saying Mayors and local areas will be in the driving seat of change
Visit follows Chancellor’s speech earlier this week setting out immediate action to fix the foundations of the economy, rebuild Britain and make every part of the country better off
The visit comes days after the Chancellor, Rachel Reeves MP, unveiled 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.
Ms Kendall said rising levels of economic inactivity are unacceptable and that immediate action must be taken. 9.4 million people are now economically inactive, a record 2.8 million people are out of work due to long-term sickness, and 900,000 young people (1 in 8) are not in education, employment, and training.
On her first visit as Secretary of State, with the rest of the Ministerial team, Liz Kendall MP will confirm the three pillars of the UK Government’s Back to Work plan:
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 18-21.
Work and Pensions Secretary, Liz Kendall MP, said: “Growth is our number one mission and, as the Chancellor 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.
“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.
“Change delivered by local areas for local people, driving growth and delivering opportunity and prosperity to everyone, wherever they live.”
Earlier this week the Health Secretary set out how cutting NHS waiting lists will get Britain back to health and back to work, and how by taking bold action on public health we can build the healthy society needed for a healthy economy.
Under the DWP’s plan, Jobcentre Plus and the National Careers Service will be merged to get more people into work and to support those seeking better opportunities with the means to find better paid work.
The Youth Guarantee will mean more opportunities for training, an apprenticeship or help to find work for all young people aged 18-21 years old, 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.
On their visit to Leeds today the DWP’s new ministerial team will visit a jobcentre to see first-hand how they’re supporting people with health conditions, and those aged 18-24 and over 50.
They will then be joined by Tracy Brabin, West Yorkshire Mayor. They will visit Smartworks – a charity who work to build the confidence of clients and help prepare for interviews by providing free clothing ahead of interviews.
Social Justice Secretary writes to DWP on work capability announcements
Changes to work capability assessments announced in the Autumn Statement are ‘deeply concerning’ and could mean people receive less support based on a change of criteria rather than a change in their health, Social Justice Secretary Shirley-Anne Somerville has said.
Writing to DWP Secretary Mel Stride, Ms Somerville highlighted how the Scottish Government has taken a different approach with its social security system being based on treating people with fairness, dignity and respect.
Ms Somerville said: “I remain deeply concerned about the changes to the activities and descriptors for ‘getting about’ for Limited Capability for Work, and the mobilising and substantial risk criteria for limited capability for work-related activity.
“The changes you are proposing, including the extension of the sanctions regime, will have very significant additional impact on some of the most vulnerable people in our communities who need our support most.
“In Scotland, we have taken a different approach to devolved employability support; our services remain voluntary, and we want the support we provide to be seen as an opportunity, not a threat, with fairness, dignity and respect at its heart.
“In delivering our first devolved employability service, Fair Start Scotland, Scottish Government officials had a close working relationship with Job Centre Plus to ensure we were collectively working to provide support for the people of Scotland.”
The proposals in the UK Government’s Back to Work Plan contain a confusing mixture of devolved and reserved responsibilities, which leave us slightly mystified as to exactly how this is all going to work in practice (writes Fraser of Allander Institute’s MAIRI SPOWAGE):
In his speech, the Chancellor said: “… last week I announced our Back to Work Plan. We will reform the Fit Note process so that treatment rather than time off work becomes the default.
“We will reform the Work Capability Assessment to reflect greater flexibility and availability of home working after the pandemic. And we will spend £1.3 billion over the next five years to help nearly 700,000 people with health conditions find jobs.
“Over 180,000 more people will be helped through the Universal Support Programme and nearly 500,000 more people will be offered treatment for mental health conditions and employment support.
“Over the forecast period, the OBR judge these measures will more than halve the net flow of people who are signed off work with no work search requirements. At the same time, we will provide a further £1.3 billion of funding to offer extra help to the 300,000 people who have been unemployed for over a year without having sickness or a disability.
“But we will ask for something in return. If after 18 months of intensive support jobseekers have not found a job, we will roll out a programme requiring them to take part in a mandatory work placement to increase their skills and improve their employability. And if they choose not to engage with the work search process for six months, we will close their case and stop their benefits.”
These changes have the potential to impact recipients of Universal Credit. The complication is that UC is reserved, while many elements of employment support – the “extra help” that the Chancellor talks about – is, on the whole, devolved.
Because of this, many of the support mechanisms to help people avoid sanctions in England (& Wales in most cases) generated Barnett consequentials, including:
Restart: expand eligibility and extend the scheme for two years
Mandatory Work Placements: phased rollout
Universal Support: increase to 100,000 starts per year
Talking Therapies: expand access and increase provision
Individual Placement and Support (IPS): expand access
Sanctions: closing claims for disengaged claimants & end of scheme review
Fit Note Reform trial
So, in summary, it looks like the sanctions could be applied in a reserved benefit, following support that may or may not be provided by the Scottish devolved employability system as the Scottish Government could choose to spend the money on something else.
We wait for more details from both the UK & Scottish Governments about how this is going to work in practice.
“But our message is clear: if you are fit, if you refuse to work, if you are taking taxpayers for a ride – we will take your benefits away.”
Changes are part of the new Back to Work Plan which will help up to 1,100,000 people with long-term health conditions, disabilities or long-term unemployed to look for and stay in work.
Additional support comes alongside tougher sanctions for people who don’t look for work, as part of the next generation of welfare reforms.
Includes exploring reforms of the fit note system, expansion of available treatment and employment support, and formal launch of the WorkWell service to help people start, stay and succeed in work.
The Chancellor Jeremy Hunt and the Secretary of State for Work and Pensions Mel Stride will unveil their Back to Work Plan– a package of employment focused support that will help people stay healthy, get off benefits and move into work – as part of the Autumn Statement.
Building on the ambitious £7 billion employment package from Spring Budget the Chancellor is using his Autumn Statement to outline a new Back to Work Plan, which will expand the employment support and treatment available and reform the ways that people with disabilities or health conditions interact with the state.
Getting more people into work and ensuring work pays remains a key priority for the government. It is important for growing the UK economy, managing inflation, controlling spending, and improving living standards. Getting more people into good jobs is also good for those individuals and the best route out of poverty.
The government is boosting four key programmes – NHS Talking Therapies, Individual Placement and Support, Restart and Universal Support – to benefit up to 1.1 million people over the next five years and help those with mental or physical health conditions stay in or find work.
The new WorkWell service as announced at Spring Budget and delivered by the Departments for Work and Pensions and Health and Social Care is also being formally launched today and will support almost 60,000 long-term sick or disabled people to start, stay and succeed in work once rolled out in approximately 15 areas across England.
The prospectus that will be launched in the coming weeks will provide information for all Integrated Care Systems across England to develop their localised work and health strategy.
Ministers are also planning to trial reforms to the fit note process to make it easier and quicker for people to get specialised work and health support, with improved triaging and signposting. Since the pandemic the number of people inactive in the UK due to long-term sickness or disability has risen by almost half a million to a record high of 2.6 million, with mental health, musculoskeletal conditions and heart disease being some of the main causes.
Stricter benefit sanctions will also be enforced by the Department for Work and Pensions for people who are able to work but refuse to engage with their Jobcentre or take on work offered to them. Benefit claimants who continue to refuse to engage with the Jobcentre will face having their claim closed. The latest published data shows that there were 300,000 people who had been unemployed for over a year in the three months to July.
The announcement today forms part of wider plans to grow the economy expected in the Autumn Statement on Wednesday 22 November. The Chancellor is set to reveal a raft of changes to get the UK economy growing including getting people back into work.
Chancellor of the Exchequer, Jeremy Hunt, said:“We’re serious about growing our economy and that means we must address the rise in people who aren’t looking for work – especially because we know so many of them want to and with almost a million vacancies in the jobs market the opportunities are there.
“These changes mean there’s help and support for everyone – but for those who refuse it, there are consequences too. Anyone choosing to coast on the hard work of taxpayers will lose their benefits.”
Secretary of State for Work and Pensions, Mel Stride, said:“We are rolling out the next generation of welfare reforms to help more people start, stay and succeed in work. We know the positive impact work can have, not just on our finances, but our health and wellbeing too.
“So we are expanding the voluntary support for people with health conditions and disabilities, including our flagship Universal Support programme.
“But our message is clear: if you are fit, if you refuse to work, if you are taking taxpayers for a ride – we will take your benefits away.”
The plans announced today set out how the government will tackle long-term unemployment by supporting Universal Credit claimants to find work while strengthening work search requirements for job seekers through all stages of their Universal Credit claim.
As a result of these reforms, no claimant should reach 18 months of unemployment in receipt of their full benefits if they have not taken every reasonable step to comply with Jobcentre support.
The plans to tackle long-term unemployment include:
Testing Additional Jobcentre Support in England and Scotland – testing how intensive support can help claimants into work who remain unemployed or on low earnings after 7 weeks into their Universal Credit claim.
Extending and expanding the Restart scheme in England and Wales for 2 years – expanding tailored, intensive support to people who have been on Universal Credit for more than 6 months rather than 9, helping them to tackle barriers to entering employment through coaching, CV and interview skills, and training. The scheme will be extended for two years until June 2026.
Introducing a claimant review point – Universal Credit claimants who are still unemployed after the 12-month Restart programme will take part in a claimant review point: a new process whereby a work coach will decide what further work search conditions or employment pathways would best support a claimant into work. If a claimant refuses to accept these new conditions without good reason, their Universal Credit claim will be closed.
Rolling out mandatory work placement trials – through the claimant review point, claimants who have not yet moved into work by the end of Restart will be required to accept a job or to undertake time-limited work experience or other intensive activity to improve their employability prospects. Failure to do so at this stage will lead to immediate sanction, with the full removal of the Universal Credit standard allowance.
Stricter sanctions for people who should be looking for work but aren’t – including:
targeting disengaged claimants by closing the claims of individuals on an open-ended sanction for over six months and solely eligible for the Universal Credit standard allowance, ending their access to additional benefits such as free prescriptions and legal aid;
rooting out fraud and error using the government’s Targeted Case Review to review the Universal Credit claims of disengaged claimants on an open-ended sanction for over eight weeks, ensuring they receive the right entitlement;
digital tools to track claimants’ attendance at job fairs and interviews.
Plans set out also include expanding key health and employment programmes, to benefit over half a million people over the next five years and help those with mental health conditions stay in or find work:
NHS Talking Therapies – increasing the number of people benefitting from courses of mental health treatment by an additional 384,000 people over the next five years and increasing the number of sessions available.
NHS Talking Therapies provides evidence based psychological therapies including Cognitive Behavioural Therapy (CBT), for treatment of mild and moderate mental health conditions such as depression and anxiety disorders.
Individual Placement and Support (IPS) – aiming to help an additional 100,000 people with severe mental illness to find and keep jobs over the next five years. IPS is an employment support programme integrated in community mental health services. IPS employment specialists:
Work with people accessing the service to find them employment that matches their aims, interests and skills, and offer continued support once they are in post.
Integrate with the mental health team to support the individual with any issues that affect their work and recovery.
Build relationships with employers to negotiate job opportunities.
Universal Support in England and Wales – matching 100,000 people per year with existing vacancies and supporting them in their new role, an increase on the 50,000 people outlined at Spring Budget, also helping people with disabilities and from vulnerable groups.
Participants will access up to 12 months of personalised ‘place and train’ support. The individual will be supported by a dedicated keyworker who will help the participant find and keep a job, with up to £4,000 of funding available to provide each participant with training, help to manage health conditions or help for employers to make necessary accommodations to the person’s needs.
WorkWell – The service announced at Spring Budget 2023 is being formally launched to Integrated Care Systems across England and will help support people at risk of falling into long-term unemployment due to sickness or disability, through integrated work and health support. Integrated Care Systems across England will be supported to develop a localised work and health strategy, and then services will be provided in approximately 15 pilot areas.
Secretary of State for Health and Social Care, Victoria Atkins, said:“We know that tailored work and health support initiatives can help break down the kinds of barriers that can make finding and staying in a job more difficult for those with mental health conditions.
“Backing them with further investment means they’re more widely available, enables personalised help and will get thousands back to work by overcoming any issues that may be preventing them from fulfilling their career potential.”
Kate Shoesmith, Recruitment and Employment Confederation (REC) Deputy Chief Executive, said:“Today’s announcements will help the Restart scheme keep making a real difference to people’s work and life chances.
“It contributes to efforts to overcome our labour and skills shortages and to further growing our economy. Bringing public and private employment services together is vital to get people into work and not look back.
“Our own award-winning Restart scheme, which sees recruiters work with employability services provider Maximus, has helped place 1700 long-term unemployed people into work since 2021.”
