18 Sep 2024
The Commission on the Future of Employment Support was launched in November 2022 to develop evidence-led proposals for reform of our system of employment support and services, so that it can better meet the needs of individuals, employers and our economy.
Over its two years, the Commission has undertaken the largest investigation into our system of employment support in at least a generation – running a major Call for Evidence that received around one hundred responses; holding over thirty consultation events, workshops and focus groups; and conducting a wide ranging review of the literature around ‘what works’ in employment support.
The Commission was established during a time of rising ‘worklessness’ in the UK, in contrast to nearly every other economy in the developed world – where worklessness has been falling and employment setting new records. However the Commission was also established because we felt that recent trends reflect much more deep rooted, structural challenges in our economy and public policy: with the UK entering the pandemic with a labour market characterised by significant inequalities, insecurity and unacceptably high rates of poverty affecting people in and out of work, and ill-equipped for the future challenges and opportunities from demographic, technological and economic change.
Through our evidence gathering, we found many good practices in how services are working now, but also a range of fundamental problems. We found that the UK has the least well-used employment service in Europe – often acting as an extension of the benefits system, with an over-reliance on compliance and sanctions, an ‘any job’ mindset, and often limited access to personalised support for those who are more disadvantaged in the labour market. This has often pushed people away from support and disempowered and penalised those that do engage. We heard similar concerns from employers and employer bodies, with often limited use of services, and a confusing and fragmented landscape that does not join up effectively between employment, skills, and wider workplace support.
The economic and fiscal costs of these failures are significant too: had the UK maintained its relative position internationally, then the economy would be £25 billion a year larger and the public finances £16 billion per year better off than they are now.
The final report of the Commission is available here. The report argues for far-reaching reforms in four main areas:
- An ambitious approach to the government’s new Jobs and Careers Service: underpinned by a new online employment service, an on the high street network of employment, skills and careers centres that are open to all, and on the doorstepintegration of employment and careers advice within wider public, community and voluntary services; alongside a clear, joined up offer for employers
- New Labour Market Partnerships within local areas – so that ‘work, health and skills plans’ can enable areas to join up services, broaden access to support and tailor provision to local needs
- Ending the ‘compliance culture’ in jobcentres –including by ending the ‘35-hour rule’ for jobseekers and those in low paid work, having a clearer separation between benefits administration and employment support, and replacing the Claimant Commitment with forward-looking Action Plans
- A clear framework for a reformed system, across national and local services – underpinned by specific objectives on raising employment, tackling poverty at work and reducing inequalities; a guarantee that if you want help you will be able to get it; and common standards for the quality of services for individuals and employers
Alongside this, the report makes recommendations for reforms to the role of central government – so that it can focus on building capacity and capability, using and sharing evidence on what works, and supporting areas and services to innovate and improve – and proposes full devolution of employment support to Scotland and Wales on the same basis as has happened successfully in Northern Ireland.
The report also sets out a roadmap for implementing reforms over the next two years, and argues that the reforms would more than pay for themselves with only marginal improvements in take-up and outcomes from employment support.
Further background
The interim report of the Commission, setting out the findings from the Call for Evidence, initial evidence review and roundtables and focus groups, is available here:
Work in Progress: Interim report of the Commission on the Future of Employment Support
The Commission’s launch report and an accompanying evidence paper are available at the following links:
Launch report executive summary
You can also learn more about the Commission in this recording of a webinar to officially launch the Commission, in early December 2022: