The Labour government is to introduce new work, health and skills plans for the economically inactive, led by mayors and local areas in a bid to reach an 80% employment rate.
The plan forms part of proposals to drive down economic inactivity, with 2.8 million people out of work due to ill health or disability and Britain remaining the only country in the G7 whose employment rate has still not returned to pre-pandemic levels.
Work and pensions secretary Liz Kendall (pictured) used her first speech in her new role to outline government’s proposals to drive down economic inactivity at a launch event for Barnsley Council’s Pathways to Work report.
As part of the drive to tackle economic inactivity, the secretary of state also announced a new group of external experts who will provide labour market insight and advice to drive change throughout the system.
The Labour Market Advisory Board, which will be chaired by Paul Gregg – former director of the Centre for Analysis of Social Policy at the University of Bath – is expected to meet quarterly and will provide advice to the work and pensions secretary and offer insight, expertise, and challenge to the department’s plans.
The speech follows the government’s announcement that it will publish a white paper building on manifesto commitments of a three-pillared approach to support people into work:
- 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 to 21.
It forms part of a cross-government approach to help people into work, including the launch of Skills England, and cutting NHS waiting lists.
“We will empower local leaders and local areas to tackle economic inactivity and open up economic opportunity,” Kendall said.
“We will give local places the responsibility and resources to design a joined-up work, health and skills offer that’s right for local people.
“DWP will support local areas to make a success of this new approach.”
And Kendall added that government will devolve new powers over employment support to catalyse action and change.
“Over the last 14 years millions of people have been denied their rightful chance of participating in the labour market, and the hope of a brighter future,” she continued.
“They’ve been excluded, left out, categorised and labelled. Britain isn’t working.
“We need fundamental reform so the department for welfare becomes a genuine department for work.
“We’ll pursue an ambitious plan alongside the government’s goals to raise productivity and living standards and to improve the quality of work. To get Britain growing again, get Britain building again and get Britain working again.”