Zarah ChoudharyAhead of the Budget, Chancellor Rachel Reeves has unveiled a £240m cash injection to accelerate the roll-out of local services to help people back into work and drive down inactivity.
The UK remains the only G7 country that has higher levels of economic inactivity now than before the pandemic, with 2.8 million people out of work due to long-term sickness.
The funding is partly set to go towards boosting the roll-out of Get Britain Working ‘trailblazers’ in local areas, which will bring together and streamline work, health, and skills to support to disabled people and those who are long-term sick.
These trailblazers will focus on reaching people not normally in touch with the system, by enabling local areas to help them access existing support in skills, education, employment, or health, as well as testing early interventions targeted at the specific barriers they are facing to work.
Recognising that poor health is a key driver of economic inactivity, trailblazers will also ensure work and skills support is better integrated with the health service, to ensure people get the joined-up health and employment support they need to get back into work and stay in work.
The Government will also work in partnership with mayors to develop these trailblazers, to ensure these local services are tailored to meet the unique employment and inactivity challenges in different areas.
Benefit reform is also set to be accelerated this year, with 800,000 people on the old Employment and Support Allowance (ESA) benefit to be moved onto Universal Credit (UC) from this autumn instead of 2028.
These announcements precede the Get Britain Working White Paper – set to be unveiled later in the Autumn – which will set out the Government’s plans for reform.
Reeves said: “Due to years of economic neglect, the benefits bill is ballooning.
“We will build a Britain where people who can work, will work, turning the page on the recent rise in economic inactivity and decline and towards a future where people have good jobs and our benefits bill is under control.”
Work and Pensions Secretary Liz Kendall said: “Millions of people have been denied the opportunity to build a better life.
“This includes one-in-eight young people who have had their hopes of a brighter future dashed and written off before they’ve even begun.
“Through our Get Britain Working plan, we will ensure every young person is supported to find earnings or learning, while our new jobs and careers service will transform opportunity for all, as we deliver the fundamental reforms needed to tackle spiralling inactivity, grow the economy, and take our first steps to our ambitious 80% employment rate.”
Shevaun Haviland, director general of the British Chambers of Commerce, said: “The high number of working age people who are economically inactive is a real and daily concern to employers.
“Many firms are struggling to fill job vacancies, and this is constraining their operations and profitability.
“We welcome further cash investment into tackling economic activity.
“Businesses will be pleased to hear about plans to improve skills, health and employment support for people who want to work – alongside support for young people to start and build their careers.
“It’s important these changes are delivered quickly to help firms develop thriving workforces, so they can grow and invest further in the years to come.”
