The Department for Work and Pensions (DWP) is set to introduce a “groundbreaking” new White Paper this autumn, aimed at boosting the number of unemployed and long-term sick individuals re-entering the workforce. Advisors of the UK Labour Government, charged with overcoming what has been termed “the greatest employment challenge for a generation,” met with the Work and Pensions Secretary on September 9 for an inaugural discussion.
The newly formed Labour Market Advisory Board, appointed by Work and Pensions Secretary Liz Kendall MP, consists of experts in business, industrial relations, and academia. During their first meeting, the board proposed strategies to reduce economic inactivity, address barriers to employment such as physical and mental health issues, and support the government in reaching an 80 percent employment rate.
Work and Pensions Secretary Liz Kendall MP expressed that spiraling inactivity is a significant challenge, with nearly 2.8 million people out of work due to long-term sickness. She highlighted the importance of the board’s knowledge in rebuilding Britain, driving up opportunities, and improving the economy’s foundations.
The board is tasked with analysing the impact of ill-health on workforce participation and suggesting ways for the UK Government to help more individuals secure meaningful employment. Recent figures indicate that while Wales no longer holds the highest economic inactivity level in the UK, its unemployment rate has slightly risen, with low employment figures compared to the rest of the UK.
Paul Gregg, Chair of the Labour Market Advisory Board, stressed the need to address the challenges faced by the current labour market, particularly the increase in economic inactivity and long-term sickness, impacting young people post-pandemic. He underscored the importance of reversing these trends for the UK’s long-term prosperity.
The Secretary of State is expected to unveil plans for devolving powers to local areas to target inactivity with specific work, health, and skills programs. These initiatives are anticipated to be part of a forthcoming White Paper, ‘The Plan to Get Britain Working,’ which includes proposals for a youth guarantee for 18-21 year olds and revamping jobcentres through integration with the National Careers Service.
The forthcoming White Paper is set for release this autumn, intended to address pressing issues and develop strategies to enhance workforce participation and economic activity across the UK.