The Department for Work and Pensions (DWP) has announced plans to launch a “groundbreaking” White Paper in the coming autumn with a focus on helping more unemployed and long-term sick individuals return to work. Advisors from the UK Labour Government are working to tackle what has been described as “the greatest employment challenge for a generation”. They recently met with the Work and Pensions Secretary, Liz Kendall MP, to kick off discussions.
The newly formed Labour Market Advisory Board, under the leadership of Liz Kendall, consists of experts from various fields such as business, industrial relations, and academia. During their initial meeting, the board suggested innovative strategies to address economic inactivity issues and barriers to employment, including mental and physical health challenges. Their ultimate goal is to boost the UK’s employment rate to 80%.
The current economic landscape, marked by a surge in inactivity and long-term sickness, particularly among young people post-pandemic, presents significant challenges. Real wage growth has also been stagnant for 15 years, impacting living standards and government revenues. Paul Gregg, Chair of the Labour Market Advisory Board, emphasised the importance of reversing these trends for the long-term prosperity of the UK’s labour market.
In response to these challenges, the DWP is working on a White Paper titled ‘The Plan to Get Britain Working’. This document will include proposals for a new youth guarantee for 18-21 year olds and the integration of jobcentres with the National Careers Service. The initiatives aim to empower local areas to address economic inactivity with targeted work, health, and skills plans.
Work and Pensions Secretary, Liz Kendall MP, stated that addressing spiralling inactivity is crucial for rebuilding the economy and creating opportunities for all. The Board is expected to delve into the impact of ill-health on workforce participation and collaborate with the UK Government to facilitate meaningful employment for more individuals. The impending White Paper is scheduled for release in the autumn as part of the government’s efforts to revitalise the labour market post-pandemic.