DWP to launch 'groundbreaking' plan to get more people back into work
The Department for Work and Pensions (DWP) is set to introduce a "groundbreaking" new White Paper this autumn, geared towards boosting the number of unemployed and long-term sick individuals re-entering the workforce. UK Labour Government advisors, tasked with overcoming what has been dubbed "the greatest employment challenge for a generation", convened with the Work and Pensions Secretary on Monday, September 9, for an inaugural discussion.
Appointed by Work and Pensions Secretary Liz Kendall MP, the newly formed Labour Market Advisory Board is comprised of experts spanning the spheres of business, industrial relations and academia. During its first meeting, the board proposed fresh strategies aimed at steering government efforts to reduce economic inactivity, tackling fundamental issues that keep people from working such as poor physical and mental health, and strategizing on ways the group can aid the government in achieving its goal of an 80 per cent employment rate.
As it moves forward, the board is tasked with crafting innovative concepts and initiatives for Work and Pensions Secretary Liz Kendall to evaluate in her mission to decrease the levels of economic inactivity. This is particularly pressing for the UK which remains the sole G7 nation yet to have its employment and inactivity rates revert to pre-Covid standings.
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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." The Board is set to review the implications of ill-health on workforce participation and explore ways the UK Government can facilitate more people obtaining meaningful employment, reports the Daily Record.
It was recently reported that Wales no longer has the highest economic inactive level in the UK. Latest quarterly figures from the ONS also showed that while its unemployment rate had seen a rise, it remained slightly below that for the UK as a whole - although its employment figure was one of the lowest in the UK. For money-saving tips, sign up to our Money newsletter here.
From May to July this year, the economic activity rate among working age adults in Wales fell 1.2% (23,000 people) to 27.2% or 520,000 people. You can read more about this here.
Paul Gregg, Chair of the Labour Market Advisory Board, said: "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 Secretary of State is expected to announce her agenda, expanding on devolution of powers to local areas to address inactivity with targeted work, health, and skills plans. These intentions are anticipated to feature in an impending White Paper scheduled for release in the autumn.
Included in the White Paper, dubbed 'The Plan to Get Britain Working', will be proposals for a new youth guarantee targeted at 18-21 year olds, coupled with an overhaul of jobcentres through integration with the National Careers Service. The document is due for publication this autumn.