The UK government has introduced an ambitious plan to boost employment and reduce economic inactivity, as outlined in the "Get Britain Working" white paper published by the Department for Work and Pensions (DWP) on November 26. The initiative aims to achieve an 80% employment rate by the end of the current parliament, with a commitment of £240 million to address various root causes of economic inactivity.
Boosting Public Services in High Inactivity Areas
Enhancing NHS Services
One of the key proposals in the white paper is to enhance public services in areas with high economic inactivity. The government plans to increase NHS appointments and reduce waiting lists in 20 NHS Trusts located in regions with significant health-related economic inactivity. This initiative aims to improve access to healthcare, thereby enabling more individuals to return to work. Jeanette Wheeler, Chief HR Officer at MHR, praised the government’s dedication to prioritizing workers’ rights but indicated that businesses would need further support to navigate the new labor reforms alongside recent tax changes.
Additionally, the aim is to target the root causes of health-related economic inactivity by improving access to mental health support and other critical health services. With the expansion of NHS services in these targeted areas, they hope to see a decrease in the number of individuals unable to work due to health issues. This initiative recognizes that without addressing these fundamental barriers to employment, a significant portion of the population will remain economically inactive, regardless of other supportive measures.
Expanding Access to Employment Advisers
In the effort to improve NHS services, the white paper also proposes expanding access to employment advisers for mental health and musculoskeletal services. By integrating employment support with healthcare services, the government hopes to address the health-related barriers that prevent many individuals from participating in the labor market. This measure aims to provide a more holistic approach to care by ensuring that those receiving health treatment also have the opportunity to receive employment support in parallel.
Kevin Fitzgerald, UK Managing Director at Employment Hero, stressed the importance of a collaborative approach between the public and private sectors to achieve and sustain the target employment rate. By coordinating efforts across multiple sectors, employment advisers can offer more tailored and effective support to those struggling with mental health and musculoskeletal issues, ultimately easing their transition back into the workforce. This dual approach is expected to significantly reduce the high rates of economic inactivity caused by such health challenges.
Investing in Back-to-Work Support
The ‘Connect to Work’ Program
Another cornerstone of the white paper’s strategy is investing £115 million in back-to-work support, particularly through the ‘Connect to Work’ program. This initiative is designed to help 100,000 economically inactive individuals return to work by providing tailored support and resources. The program aims to address the specific needs of jobseekers, ensuring they receive the necessary assistance to re-enter the workforce. The ‘Connect to Work’ initiative is seen as a crucial means to bridge the gap between those seeking employment and the opportunities available to them.
Stephen Evans, CEO at the Learning and Work Institute, believes a local work and health plan could help reduce labor force absenteeism due to ill health. However, he emphasizes that employer participation is vital for success and calls for additional support for businesses in designing jobs, recruiting staff, and retaining employees who develop health problems. Businesses must be prepared to adapt their recruitment processes and job designs to better accommodate individuals returning to work after periods of economic inactivity or ill health, ensuring a seamless reintegration into the workforce.
Local Work and Health Plans
The government’s investment strategy also includes the implementation of local work and health plans aimed at reducing labor force absenteeism due to ill health. These plans would involve collaboration between local authorities, healthcare providers, and employers to create a supportive environment for individuals returning to work. The localized approach allows for a better understanding of the specific challenges faced by different communities and offers more targeted solutions.
Employer participation is crucial for the success of these plans, and additional support for businesses is necessary to design jobs, recruit staff, and retain employees who develop health problems. Stephen Evans highlights the need for a concerted effort from all stakeholders, asserting that without the cooperation and support of local employers, the impact of the work and health plans will be significantly diminished. The collaborative effort aims to create a more inclusive and flexible labor market, addressing the unique needs of workers and helping them to integrate more effectively into their professional roles.
Guaranteeing Employment, Education, or Training for Youth
The Youth Guarantee Initiative
A central element of the white paper is the "Youth Guarantee" initiative, promising to place every 18 to 21-year-old in either education or employment. This initiative aims to prevent future economic inactivity by ensuring that young people have access to opportunities that will help them build their careers. By providing a guaranteed placement in education, training, or employment, the initiative seeks to equip young individuals with the skills and experience necessary to thrive in the job market.
The DWP aims to offer places in education or training for every 16 and 17-year-old, along with career advice and mental health support. However, Kevin Fitzgerald notes that extending the age bracket to include people up to 30 years old could better address critical skills gaps and support the 900,000 inactive young individuals who desire work. A more inclusive age range could bridge significant skills gaps seen in various industries, addressing both immediate and long-term employment needs.
Extending Support to Older Youth
Given the vast number of young people in need of support, the white paper further suggests extending the Youth Guarantee initiative beyond the current age limits. Kevin Fitzgerald, UK Managing Director at Employment Hero, argues that extending the age bracket to include individuals up to 30 years old could better address critical skills gaps. This extension could significantly impact the 900,000 inactive young individuals who desire work, helping them obtain the necessary education, training, and career advice to transition into the workforce.
By broadening the scope of the initiative to accommodate older youth, the plan aims to mitigate the disadvantages faced by this demographic while offering them a more supportive and structured pathway into work. This extended support could foster a smoother integration into the labor market and better equip employers with a skilled, enthusiastic workforce ready to contribute to the economy. Ensuring that this support extends into the later stages of youth will also help address the complexities and challenges young people face when transitioning into stable employment.
Replacing Jobcentres with a National Careers Service
Personalized Support for Jobseekers
In an effort to modernize employment support, the white paper proposes replacing jobcentres with a National Careers Service. This new service will focus on providing personalized support for jobseekers, helping individuals find a career and develop appropriate skills. By fostering relationships with employers, the service aims to identify recruitment needs and match them with suitable candidates. Jobseekers will be expected to be proactive in their job search, with the National Careers Service offering guidance and resources to support their efforts.
Michael Houlihan, CEO of Generation, acknowledges the merits of a localized approach but warns that the absence of a national program may leave many people disconnected from the job market. The National Careers Service intends to bridge this gap by offering services tailored to individual needs, ensuring that jobseekers receive relevant training and support. By working closely with businesses and local authorities, the service can ensure that jobseekers have access to the opportunities they need and help them make informed career decisions.
Building Employer Relationships
One of the key elements of the National Careers Service is its focus on building strong relationships with employers to better understand their recruitment needs and match them with suitable candidates. This collaborative approach ensures that jobseekers receive relevant training and support, ultimately leading to more successful employment outcomes. By working closely with businesses, the service can tailor its offerings to meet the specific requirements of different industries and communities.
The National Careers Service aims to create a more dynamic and responsive labor market by facilitating better communication between jobseekers and employers. This alignment is expected to lead to higher job placement rates and more satisfied employees, as individuals are matched with roles that suit their skills and aspirations. By offering ongoing support and resources, the service can help jobseekers remain engaged in their job search and make steady progress toward their career goals.
Reviewing Employers’ Health Support
Supporting Disabled and Health-Conditioned Workers
The white paper addresses the cost of poor health on employers and proposes a review to determine how best to support employers in recruiting and retaining people with disabilities and health conditions. This review will explore ways to prevent poor health at work and facilitate quicker returns to work for those who have been ill. Angela Matthews, Director of Public Policy and Research at Business Disability Forum, supports the review but calls for reforms to statutory sick pay and the fit note system.
These reforms would help individuals returning to work after illness without facing financial disadvantages. Streamlined processes for obtaining necessary workplace adjustments are also essential to aid in the retention and productivity of disabled workers. By ensuring that disabled employees receive the accommodations they need, employers can create a more inclusive and supportive work environment, ultimately benefiting both employees and the organization.
Reforming Statutory Sick Pay and Fit Note System
The UK government has launched an ambitious plan aimed at increasing employment and reducing economic inactivity. This initiative is detailed in the "Get Britain Working" white paper, which was released by the Department for Work and Pensions (DWP) on November 26. The primary goal of this plan is to reach an 80% employment rate by the end of the current parliamentary term. To support this objective, the government has committed £240 million to tackle various underlying causes of economic inactivity.
The white paper outlines several key strategies to achieve this employment boost, including improving access to education and vocational training, enhancing support for job seekers, and addressing barriers that prevent people from entering the workforce. Additionally, the plan aims to support disadvantaged groups by providing targeted assistance and resources. By focusing on these areas, the government hopes to create a more inclusive and robust labor market, ultimately driving economic growth and reducing unemployment rates across the country.