DWP warns 9.4 million people who are unemployed it will 'tackle' problem

The Department for Work and Pensions has promised to "tackle" the nine million people on benefits who are out of work. According to DWP data, roughly 22 per cent of people are not currently working which equates to around 9.4 million people.

Liz Kendall MP, Work and Pensions Secretary said: “Spiraling 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 Labour Market and Advisory Board are made up of experts in business, academia and industry relations and includes representatives from several universities, the Health Foundation, the Trades Union Congress (TUC) and Resolution Foundation.

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Stephen Machin, Professor of Economics at LSE and CEP Director, is one of eight board members appointed by work and pensions secretary Ms Kendall MP. The board, chaired by Paul Gregg, the former director of the Centre for Analysis of Social Policy at the University of Bath, will develop new ideas and initiatives to tackle economic inactivity.

Professor Machin is renowned for his work on labour market inequality. He is a fellow of the Society of Labour Economists and a former member of the Low Pay Commission. Ms Kendall added: “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 new plans will look into issues of how local areas can help tackle workplace inactivity and include a new youth guarantee for 18-21-year-olds. Other plans include the overhauling of jobcentres which will merge with the National Careers services.

Chairman of the Labour Market Advisory Board, Paul Gregg 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.”

He added: “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.”