Chancellor Kwasi Kwarteng ‘to get Britain working again’

  • The Chancellor is expected to announce reforms to the welfare system that will encourage thousands more into work and to boost their earnings, helping grow the economy.
  • Around 120,000 more benefit claimants will be asked to take active steps to seek more and better paid work, or face having their benefits reduced.
  • Over 50s to get more support to find work, boosting economic growth.

The Chancellor is this week expected to announce changes to Britain’s welfare system that will help boost people’s earnings, get them into work and support economic growth.

Changes to Universal Credit expected to be announced later this week will require benefit claimants working up to 15 hours a week at National Living Wage to meet regularly with their Work Coach and take active steps to increase their earnings or face having their benefits reduced.

This gradual expansion is an increase from the 12-hour threshold and will bring an additional 120,000 benefit claimants into the Intensive Work Search Regime.

With more than 1.2 million job vacancies across the UK, Work Coaches will set clear expectations with claimants and make sure they stick to their commitments. These commitments could include applying for jobs, attending interviews or increasing their hours. People who don’t fulfil their job-search commitments without good reason could have their benefits reduced in line with existing benefit sanctions policy.

Eligible claimants over 50 years old, including new claimants and the long-term unemployed, will also get extra support from Work Coaches. The newly unemployed will get 9 months of targeted sessions, and people who are long-term unemployed will receive a booster session followed by 3 months of intensive employment support.

Rising economic inactivity in the over 50s is contributing to shortages in the jobs market, driving up inflation and limiting growth. Returning to pre-pandemic activity rates in the over 50s could boost the level of GDP by up to 1 percentage point.

Chancellor Kwasi Kwarteng said: “Our jobs market is remarkably resilient, but it is not perfect. While unemployment is at is at its lowest rate for nearly fifty years, the high number of vacancies that still exist and inactivity in the labour market is limiting economic growth.

“We must get Britain working again. These gradual changes focus on getting people back into work and maximising the hours people take on to help grow the economy and raise living standards for all.

It’s a win-win. It boosts incomes for families and helps businesses get the domestic workers they need, all while supporting economic growth.”

Secretary of State for Work and Pensions Chloe Smith MP said: “As we continue to face economic challenges and labour market shortages, we are committed to helping people on lower incomes to boost their pay – because we know work is one of the best ways to support your family and help grow our economy.

“Whether it’s increasing their hours in their current role, entering a new sector or switching careers, we want people of all ages and all stages to be able to progress into fulfilling careers.

“The expertise our dedicated DWP Work Coaches bring, will help to drive this change by removing barriers to progression and opening up opportunities for training and building skills, to increase earnings.”

These changes will be Great Britain-wide and, in line with usual practice, the UK Government will work with the Northern Ireland Civil Service to determine the most suitable way to deliver support in Northern Ireland in due course.

Certain groups will remain exempt from sanctions, including people who are unable to work due to long-term sickness or a disability.

New package of support to help over 50s jobseekers back into work

The UK Government has announced millions of pounds of new measures to tackle unemployment amongst the over 50s on benefits.

  • New measures set to help quarter of all jobseekers get back into work
  • Multi-million package will increase jobcentre support for over 50s including those thinking about retirement
  • Long term unemployed will be referred to the multi-billion-pound Restart Scheme which is already supporting a quarter of a million back into work

The new support follows ministers meeting their target to get half a million people into work in under six months, as part of the Way to Work jobs push launched in January.

Keeping up the momentum, £22 million will be invested in new measures to tackle unemployment amongst the over 50s on benefits, as a stable income is the best route for people to support themselves through challenging times.

Jobseekers over the age of 50 will have more one-to-one support at jobcentres to help them get into, and progress in work, boosting their earnings ahead of retirement.

This increased support will be boosted by 37 50PLUS Champions covering every district across England, Wales and Scotland who will work with local employers to help them realise how their recruitment could benefit from the talent of older workers.

Mid-life MOTs will also be available in jobcentres, targeting those thinking about retirement and engaging them to take stock of their skills and finances, and consider taking jobs that could boost their incomes based on their skills experience.

Minister for Employment, Mims Davies MP said: “Older workers are a huge asset to this country, and there are currently more than 400,000 over 50s in roles than before the pandemic.

“We’re increasing funding and support at every step of their journey up the career ladder, to ensure everyone gets the support they need to get into work, progress and use their experience to boost their earnings and plan for a better future.

“Helping people find the security of a stable income, through a job they can take pride in, is also one of the best ways for people to support their families during these challenging times.”

Carole Easton, Chief Executive at the Centre for Ageing Better, said: “Seeing DWP continue to recognise the importance of a bespoke approach to older workers is really welcome.

“We know that older workers face unique challenges, such as ageism in the workplace and a possible gap in skills compared to some of their younger counterparts, so we will gladly support any tailored action that begins chip away at these significant roadblocks standing in the way of older people accessing fulfilling work.”

Research shows that people over 50 are more likely to have caring responsibilities, with 12% of men and 16% of women aged 55-64 providing informal care and increased support from Work Coaches will help them navigate these barriers.

With the economy back on its feet, and the demand for experienced staff, the advice will help older workers make the right choice for them. And for those who have been out of work for nine months, the government’s Restart Scheme will provide a year of intensive support to get them back on the career ladder.

One year since its launch, the Restart Scheme is already seeing the first jobseekers take up work and leave the scheme and is currently supporting a quarter of a million people get the skills they need to re-enter the workforce.

This is part of the government’s renewed focus on growing the economy and helping people find work and boost their earnings.

Way to Work: 150 new jobcentres and Youth Hubs now open

Thousands more jobseekers can now access tailored face-to-face job support and meet local employers as 150 new jobcentres are opened, ‘levelling up’ opportunities across the country.

These will be at the heart of the UK Government’s Way to Work Campaign to encourage more people across Great Britain into jobs.

Towns and cities from Falkirk to Torquay are now home to over 150 new temporary jobcentres and over 150 Youth Hubs, with more to follow, as the government pledges to get 500,000 people a job by the end of June.

Two of the new temporary Jobcentres are in Edinburgh city centre.

Work Coaches at jobcentres are at the forefront of the government’s drive to help people access the support they need to get into work, and many of the team recently joined the Department for Work and Pensions as part of the rapid recruitment drive to hire 13,500 new Work Coaches to boost job seeker support as we recover from the coronavirus (COVID-19) pandemic.

A further 50 jobcentres are expected to open to the public in the coming months as efforts ramp up to get jobseekers into work faster, through the Way to Work campaign, by bringing them face to face with employers and encouraging them to look for work in a sector they may not have previously considered.

Work and Pensions Secretary of State, Thérèse Coffey, said: “We know how much people benefit from getting into work – both financially and for their wellbeing. And from getting any job first, they can get a better job next and then progress to a career.

“Jobcentres and Youth Hubs are crucial to get people into work, and will help level up opportunity across the country as through our Way to Work campaign we invite employers wherever they are to work with us and help find 500,000 people a job by the end of June.”

Driving the new Way to Work campaign, Work Coaches will help those who are capable of work search more widely for jobs from the fourth week of their claim, rather than from three months as is currently the case.

This clearer focus will ensure that, if people are not able to find work in their previous occupation or sector, they are expected to look for work in another sector and this will be part of their requirements for receiving their benefit payment.

Work Coach at Wigan Mesnes House Jobcentre Plus, Mike Cook said: “Being able to provide support and guidance to people in the local community on their journey to gain sustainable long-term employment, and therefore improving their lives, is the most rewarding and important aspect of my job as a Work Coach for the Department for Work and Pensions.

There are also over 150 Youth Hubs now up and running across the country helping young jobseekers access local training and job opportunities, as well as a range of services to address wellbeing needs.

Investing in the skills and opportunities of young people and helping people into work at every stage of their lives is an integral part of the government’s ambitious plans for levelling up, which will transform the economic geography of the UK.

Youth Hub Work Coaches are working with jobcentre-based Youth Employability Coaches and tailored employment programmes, including Kickstart, to ensure quality, joined up support is accessible to those who need it.

Youth Work Coach at Barrow Youth Hub, Lisa Wicks said: “I have found working as a Youth Hub Work Coach both challenging and rewarding. To be able to offer support to some of our most vulnerable young people and to watch them grow in confidence and capability is a real privilege.

“This has been supported by partnership, working both within the DWP and with external partners, and is making a real difference to the lives of the young people accessing the support available.”

The government’s Plan for Jobs agenda is supporting jobseekers into work and those on low-pay to progress and earn more. The new Way to Work campaign will ‘turbocharge’ this national effort by getting half a million people into work over the next five months.

EDINBURGH’s new temporary Jobcentres can be found at:

Edinburgh11-15 North Bridge, Edinburgh, EH1 1SB 
Edinburgh Waverley BridgeUnit L23, Waverley Mall, Waverley Bridge, Edinburgh, EH1 1BQ