Jessica O'ConnorThe Government has confirmed that the funding model for careers advisers in England will be reformed, following criticism from MPs that the current system fails both advisers and jobseekers.
The changes come in response to the Work and Pensions Committee’s ‘Creating a new jobs and careers service’ report, which warned that poor funding and misguided targets had resulted in advisers spending too little time with individuals while being pushed toward low-impact, target-driven activity.
In its formal response, the Government said that bringing “careers advice in England in house will end the current incentivised model and enable the development of a more integrated service.”
Careers advice is devolved, meaning the reforms do not automatically apply in Scotland, Wales or Northern Ireland.
The Government also acknowledged the Committee’s concerns that the planned Jobcentre–careers service merger risked blurring the distinction between work coaches and careers advisers, potentially undermining the effectiveness of both roles.
It confirmed it is exploring a “dedicated training pathway” for advisers, in addition to the Coaching Academy currently being developed for work coaches.
MPs had warned that eliminating the distinction between the two professions would damage the quality of employment support by overshadowing longer-term career guidance with short-term job-search targets.
The DWP has now committed to publishing a transition plan for National Careers Service staff within six months.
The move to bring contracts in-house has raised concerns among advisers about what will happen when existing contracts end on 30 September 2026.
Committee chair Debbie Abrahams said: “We welcome the Government’s recognition that the careers service funding model was broken and that it must be reformed.
“Budgeting, as it does now, for just one meeting between jobseekers and advisors a year is like trying to fill an ocean with a teaspoon.
“The job is about finding out enough about people, their ambitions and interests, their skills, the barriers they face, what drives them, their needs, in order for them to be effective.
“A new, less exclusive, model would help meet the goals of Government and get people into work that suits them; benefitting jobseekers, employers and ultimately, the economy.”
She added: “The recent brief shake-up will help. Giving the DWP sole responsibility over the adult skills brief, instead of sharing with the Department for Education, should help to reduce the incoherent patchwork of services that are available.
“And bringing the careers service in house, rather than outsourcing, will in time provide clearer lines of accountability, and greater efficiency.
“But we have to recognise that pressing on with little detail on what will happen after current contracts end in September 2026 has caused significant worry among careers advisors.
“Certainty on this could be the solid foundation that ensures the new system gets off to the best start. So, the Government really needs to crack on with fleshing out the detail of the service from 2027 to boost the confidence of advisors and in the new system.”
