The Department for Work and Pensions will shift its focus from welfare to work under a Labour government, the department’s new minister has said.
In a speech in Barnsley, Secretary of State for Work and Pensions Liz Kendall said more attention needed to be given to the factors affecting whether people could get work, including health, skills, childcare and transport.
Ms Kendall has set out how Britain’s system of employment support must be fundamentally reformed to tackle the “most urgent challenge” of spiralling economic inactivity.
At the launch of the “Pathways to Work” report in Barnsley Ms Kendall laid the path for a new Government white paper to get Britain working, central to delivering the Government’s first mission – to kickstart economic growth; making everyone, not just a few, better off.
Ms Kendall said: “The fundamental problem we face is that the current system of employment support is designed to address the problems of yesterday – not today, tomorrow and beyond.
She will say over the last 14 years the DWP has focused almost entirely on the benefits system, and specifically on implementing Universal Credit, and that “nowhere near enough attention has been paid to the wider issues – like health, skills, childcare and transport – that determine whether people get work, stay in work and get on in work.”
The Secretary of State set out bold plans to tackle economic activity by enabling local leaders to tailor schemes to get people back into work – and to prioritise good, rewarding, well paid work, saying: “I can confirm today that we will empower local leaders and local areas to tackle economic inactivity and open up economic opportunity.”
“We will give local places the responsibility and resources to design a joined-up work, health and skills offer that’s right for local people.”
“DWP will support local areas to make a success of this new approach.”
As part of her drive to tackle economic inactivity, the Secretary of State will also announce a new group of external experts who will provide labour market insight and advice to drive change throughout the system.
The Labour Market Advisory Board, which will be chaired by Paul Gregg – Former Director of the Centre for Analysis of Social Policy at the University of Bath – is expected to meet quarterly and will provide advice to the Work and Pensions Secretary and offer insight, expertise, and challenge to the department’s plans.
Kate Nicholls, UKHospitality Chief Executive, said:
“The Government’s commitment to reform the current system of employment support is a positive step to help drive economic growth and get more people into work across all sectors.”
“As a central pillar of the UK economy, the hospitality sector plays a key role in driving growth, supporting job creation and regenerating towns and cities across the country, creating places where people want to live, work and invest. We can play a critical role in reducing economic inactivity and delivering prosperity.”
“We have been working closely with the Government to develop successful pilot employment schemes in cities including London, Liverpool, Manchester, Coventry and Cardiff, to tackle labour shortages in the sector and provide jobseekers with the opportunity to upskill and secure fantastic job opportunities in hospitality. This is a step in the right direction, however it’s crucial that the Government delivers its manifesto commitment to reform the Apprenticeship Levy and improve its delivery to ensure both workers and businesses are fully supported and create a sustainable model for growth moving forwards
