Kendall argued that over the past 14 years the DWP has focused almost entirely on the benefits system, and in particular on the delivery of Universal Credit, and that “nowhere near enough attention has been paid to the wider issues – such as health, skills, childcare and transport – that determine whether people find work, stay in work and progress in their working lives”.
The new government calls for “opening up employment opportunities for all” through a decentralised approach to employment support.
He will publish a white paper setting out plans for a new National Jobs and Careers Service to help more people into work and continue to support them throughout their careers.
Jobs, health and skills plans will be put in place for those out of work, led by mayors and local authorities. And a youth guarantee will be put in place for all young people aged 18 to 21.
“We will empower local leaders and local communities to tackle economic inactivity and unlock economic opportunity,” Kendall said. “We will give local communities the responsibility and resources to design a joint employment, health and skills offer that is right for local people.”
“The DWP will support local authorities to make this new approach a success. And we will devolve new powers on employment support to catalyse action and change.”
Organisations have welcomed plans to increase support and improve working conditions and pay. Kendall says too many people are trapped in low-paid, low-quality jobs. Of those who were low-paid in 2006, only one in six have escaped a decade later.
Helen Barnard, Director of Policy at the Trussell Trust, said: “Today’s announcement from the DWP is a positive step in the right direction. Prioritising dignified and accessible support for all and ensuring people can get decent and secure work are key to a future where no one needs a food bank.”
An employment support system that emphasizes voluntary and specialized services, rather than punitive measures, is essential to address difficulties.
Barnard added: “For this to work, it is essential to ensure that local plans truly bundle services and tackle barriers to employment such as transport, childcare, lack of access to health services and the lack of decent and flexible jobs. And this must be accompanied by a strategy to ensure that everyone can afford the essentials, whether they are working or not.”
But some fear Kendall’s rhetoric will deepen the stigma around welfare benefits, particularly for disabled and seriously ill people who are unable to work.
James Taylor, executive director of strategy at disability equality charity Scope, said: “We need to make it easier for disabled people who can work to get into the labour market. Ensuring that no one is excluded from work is an important ambition, and that must include disabled people.”
“There needs to be personalised support for employment and the government must not forget that some disabled people cannot work. While the possibility of working is essential, we also need a positive social protection system that offers appropriate support to disabled people.”
Kendall said: “People who are economically inactive are not a single group. Some are acting fraudulently, others are saying they can’t do it when they can, but the vast majority face a complex set of barriers that prevent them from getting what they and policy makers want – access to paid employment.”
“I believe in individual responsibility. Under this government, there will be obligations to commit to getting support, to looking for work and to commit to taking jobs when they come along.”
The Conservative government has outlined a series of plans to cut the disability benefits system to encourage more people to work, and Labour has yet to confirm whether it will abandon the plans.
Ayla Ozmen, policy and campaigns director at anti-poverty charity Z2K, said: “It’s great to see the government focusing on support rather than punishment when it comes to helping people get back into work.
“But we are still waiting for confirmation that the previous government’s cruel and dangerous proposals to cut health and disability benefits will not be implemented. And if the government is serious about tackling economic inactivity, we need urgent reform of the social security system.”
According to estimates from the Trussell Trust, Universal Credit falls short of around £120 a month to cover people’s basic needs, just to buy the basic necessities they need to survive.
Organisations including Big Issue have repeatedly called for an “essential goods guarantee” to be implemented in Universal Credit to ensure people can at least afford basic needs. But instead, the Labour government’s aim is to push people into work.
Ozmen added: “We know that inadequate basic levels of social security mean people struggle to find work because they cannot afford the costs associated with looking for a job, such as buying clothes for an interview, or simply because they spend their time trying to get by on such a low income.
“We also know that the inherent risk in the system means that some disabled people are afraid to try to work in case it doesn’t work out and they are forced to survive on a grossly inadequate standard benefit.
“While this change of direction is welcome, we need a clear commitment from the government that it will not continue with the plans put in place by the previous government and will address the shortfall in universal credit.”
Dr Tom Kerridge, head of policy and research at youth homelessness charity Centrepoint, added: “For far too long, the future of young people has not been at the centre of government policy. It is therefore no surprise that one in eight young people are currently not in education, employment or work. The human and economic costs of this are enormous.”
Research by Centrepoint shows that Britain loses £8.5 billion a year to youth homelessness, with the majority of this amount due to economic inactivity.
“Many of the young people we work with are desperate to leave homelessness and get into work or education – but too often there is nothing to help them,” Kerridge added.
“If we want young people to get into work, training or education, we need to help them halfway. You can’t punish people for choosing a career or tell them to dream big without giving them the tools to make those dreams come true.
“This is something we need to do right as a country: it would not only transform the prospects for the next generation of workers, but it would also help stimulate the economy.”
The Big Issue heard from hundreds of people who shared “harrowing experiences of proving their eligibility for benefits” – “a process that leaves them feeling extremely distressed, poorer and even suicidal”.
Katy Wright, recruitment director at the Big Issue, said: “We see the same barrier time and time again in our candidates: a crippling lack of confidence created by years of living in a benefits system that doesn’t meet their needs. There is another way out. We have built resilience in our candidates so they can overcome barriers to employment and find a job that will meet their individual needs, a job that will allow them to stay.”
“We are now urging the DWP to promote better integration of job centres with mental health services. The more closely these services are linked, the more we can provide truly sustainable solutions to the three million ‘economically inactive’ people who are unemployed in this country.”
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