Government reveals employment reforms

28 November 2024

The government has published the ‘Get Britain Working White Paper’, striving to achieve an 80 per cent employment rate.

It comes as figures have revealed that almost 1.5m people are unemployed, over 9m are inactive, and a record 2.8m are out of work due to long-term sickness.

Keir Starmer, the prime minister, said, “From the broken NHS, flatlining economy, and the millions of people left unemployed and trapped in an inactivity spiral – this government inherited a country that simply isn’t working. But we’ve set out a plan to fix this. A plan that tackles the biggest drivers of unemployment and inactivity and gives young people their future back through real, meaningful change instead of empty rhetoric and sticking plaster politics.

“Our reforms put an end to the culture of blaming and shaming people who for too long haven’t been getting the support they need to get back to work. Helping people into decent, well-paid jobs and giving our children and young people the best start in life - that’s our plan to put more money in people’s pockets, unlock growth and make people better off.”

Tackling ill health

The UK is the only major economy that has seen its employment rate fall over the last five years. The government said this has been largely driven by a significant rise in the number of people out of work due to long-term ill health.

The white paper has set out a fundamentally different approach to the employment support system, backed by £240m of investment. This will target the root causes of unemployment and inactivity and better join-up health skills and employment support based on the unique needs of local communities. 

The government has said this includes tackling ill health as the biggest driver of inactivity by fixing the NHS. Also deploying extra staff to cut waiting lists in areas of high inactivity and expanding access to mental health support, with a greater focus on prevention.

National jobs and careers service

The outdated Jobcentre system will also be transformed into a national jobs and careers service, focused on people’s skills and careers instead of just monitoring and managing benefit claims. Mayors and councils will be empowered to join up local work, health and skills support in ways that meet the specific needs of their local areas.

Opportunities for young people

The government has also set out a new ‘Youth Guarantee’, which seeks to guarantee every young person has access to education or training to help them find a job.

The government has also pledged to transform the Apprenticeship Levy in England into a more flexible Growth and Skills Levy backed by £40m, to expand opportunities for young people.

Supporting health conditions

An independent review will also be launched into how employers can be better supported to employ people with disabilities and health conditions, to keep them in the workplace.

Building on these reforms, the government will bring forward measures to overhaul the health and disability benefits system, so it better supports people to enter and remain in work and to tackle the spiralling benefits bill.

The government said the driving purpose behind this approach, is to enable everyone to have the opportunity of secure, rewarding, and fulfilling work.

Liz Kendall, secretary of state, said, “To get Britain growing, we need to get Britain working again. Our reforms will break down barriers to opportunity, help people to get into work and on at work, allow local leaders to boost jobs and growth, and give our children and young people the best opportunities to get on in life.

“The Get Britain Working White Paper shows that this government stands unashamedly for work. We will make sure everyone, regardless of their background, age, ethnicity, health, disability or postcode can benefit from the dignity and purpose work can bring.

“We can build a healthier, wealthier nation – driving up employment and opportunity, skills and productivity – while driving down the benefit bill.”