The month in work: Pathways to Work Commission launches
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Good morning!
As we enter the summer period it’s clear that the new Labour Government is determined to establish itself and a new direction of travel before politicians, journalists and citizens alike begin to break for holidays.
Following hot on the heels of an expansive King’s Speech featuring Bills designed to deliver on key manifesto commitments on strengthening workers rights, devolution and investing in housing and infrastructure, the Chancellor this week begun to lay the groundwork for her first Budget, now due to be held on 30 October 2024.
While confirming the Government’s intention to accept independent recommendations on above inflation public sector pay increases, the Chancellor also revealed what she referred to as a £22 billion in-year ‘black hole’ in the public finances left by the previous Government, which she said would require immediate spending cuts and likely tax rises later this year.
Restrictions to winter fuel payments to only those already in receipt of pension credit or other means tested benefits, and the scrapping of proposed reforms to social care in England were headline cost saving measures – but it’s likely more may follow in the Autumn.
Clearly this context raises significant questions as to the level of public funding we are likely to see dedicated to the big enablers of supporting more people into good quality, sustained employment – from childcare and skills provision, to infrastructure and health investment. It will also further underscore the need to reduce public spending over the course of the Parliament on things like out of work benefits.
And it’s also an intensely political debate – with the Prime Minister, Chancellor, Health Secretary and others in the new Government seeking to immediately make clear that any blame for tough choices to come should be put at the door of the Conservative Party. While the Shadow Chancellor and other senior Conservatives roundly reject this analysis, no doubt mindful of the long-term damage such a narrative could do to their future electoral prospects.
Against this backdrop, in this month’s edition, I’ll be reflecting on a crucial piece of work undertaken in Barnsley aimed at addressing one of the biggest economic and social issues facing the UK at the beginning of this Parliament, what Liz Kendall’s recent announcements may mean for the future of labour market and welfare policies, as well as how you can get involved in upcoming Work Foundation Party Conference activity.
I hope you are all able to have a restful summer holiday, and I’ll see you in September!
Best wishes,
Ben
Ben Harrison
Director, Work Foundation at Lancaster University
Pathways to Work Commission in Barnsley launches
I’ve spent the last 12 months acting as a Commissioner on Rt Hon Alan Milburn’s Pathways to Work Commission, and last week I was delighted to help launch our final report.
The Commission has focused on how to support those who are economically inactive in places like Barnsley in South Yorkshire back into work, and aims to develop new ideas as to how local and regional policymakers can tackle rising levels of economic inactivity, largely due to ill-health.
The findings make clear that if we are to tackle this issue then we must take a ‘place based’ approach. This includes understanding more about the specific reasons why people leave the labour market, and the practical barriers that prevent them from re-engaging in the world of work.
With the right support, it could be possible to see far more of these individuals supported back into an appropriate form of employment.
However, doing so will require major reform across the areas of employment support, welfare, health and education, alongside more targeted support for people that have been out of work and would like to re-enter the jobs market in Barnsley.
Meanwhile, there is already a clear commitment from stakeholders in South Yorkshire to move from analysis to action.
A local pilot of a new approach to providing employment support services to those economically inactive is proposed and is likely to be launched in 2025, and a number of employers in the area have already committed to proactive recruitment of those currently outside of the labour market.
You can read the report in full here.
Liz Kendall joins Commission for final launch
New Secretary of State for Work and Pensions, Liz Kendall, joined us at the launch where she used her first major policy announcement of the new Parliament to set out how she intends to move the DWP from being a department focussed on administering the welfare system, to one that is focussed on supporting people to enter and progress in work.
She argued that a radically different approach – which focuses less on imposing punitive sanctions – is required. This would involve more tailored, locally-led employment, skills and health support to help those who wish to work access a job that works for them.
The scale of the challenge that rising economic inactivity (particularly related to health) presents cannot be underestimated. But the Pathways to Work Commission, aligned with a renewed commitment from Government for national reform, does provide a blueprint for how we can begin to tackle it.
Party Conference activity
Party Conference season is fast approaching, and we are getting ready to host a number of sessions at the upcoming Labour, Conservative and Liberal Democrat Conferences in September and October.
We’ll be hosting roundtables on topics ranging from the need to address rising economic inactivity to critical reforms to sick pay, building on our recent research to curate and contribute to debates on structural inequalities in the labour market.
If you’d like to explore how you can attend these events, or partner with the Work Foundation across these activities, please do get in touch.
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