Government sets out ‘biggest reforms to employment support for a generation’

A new Government white paper has been published setting out plans for “the biggest reforms to employment support for a generation”.

The Government says the publication of its ‘Get Britain Working’ white paper yesterday is the first major step towards achieving a target of 80 per cent employment across the country.

The white paper comes as figures show almost 1.5 million people across the country are unemployed, over nine million people are economically inactive, and a record 2.8 million people are out of work due to long-term sickness.

Furthermore, the latest data shows that nationally, one in eight young people are not in education, employment or training, and nine million adults lack the essential skills they need to get on in work.

The UK is also the only major economy that has seen its employment rate fall over the last five years, which has been largely driven by a significant rise in the number of people out of work due to long-term ill health.

The ‘Get Britain Working’ white paper - backed by £240 million of investment – sets out a new approach to employment support, seeking 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.  

This includes measures intended to reduce NHS waiting lists in areas of high inactivity, expand access to NHS mental health support, and place greater focus on prevention of ill health.

The paper lays out plans for job centres to become part of a new national jobs and careers service, focused on skills and careers, and for Mayors and councils to be empowered to join up local work, health and skills support in ways that meet the specific needs of their local areas.

This builds on previous announcements that the government will seek to provide a new ‘Youth Guarantee,’ so every young person has access to education or training to help them find a job.

It also intends to make the Apprenticeship Levy in England a more flexible Growth and Skills Levy to expand opportunities for young people to develop skills and get into work.

Additionally, the Government intends to bring forward measures to overhaul the health and disability benefits system so it better supports people to enter and remain in work. A consultation will be published in Spring as part of a commitment to put the views and voices of disabled people at the heart of any policy changes that directly affect them.

Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce, said, “Enabling more people to access work is essential to tackling skills shortages and boosting economic growth.

“These measures are particularly important for driving growth in the West Midlands, where the rate of economic inactivity sits above the national average.

“Research by the Chambers suggests that over two thirds of Greater Birmingham businesses looking to recruit faced difficulties doing so in Q3 of this year.

“The ‘Get Britain Working’ whitepaper, with its emphasis on improving access to health, skills and employment support – has the potential to make a real difference for employers, employees and the local economy, but delivery will be key.

“The high number of working age people who are economically inactive though ill health is a particular concern for employers. We look forward to engaging with the review into how employers can be supported to promote healthy and inclusive workplaces.

“Tax reforms, in particular, would make it easier for employers to take a proactive role in this.”

The GBCC is seeking to understand what recent government announcements, including changes to National Insurance Contributions and the National Living Wage mean for the business community.

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