Government unveils biggest employment reforms in a generation to Get Britain Working again

Unveiling the biggest reforms to employment support for a generation, Work and Pensions Secretary, Liz Kendall has today (26 November) published the Get Britain Working White Paper, marking the Government’s first major intervention to achieve an ambitious 80 per cent employment rate.

It comes as stark figures show almost one and a half million people are unemployed, over nine million people are inactive, a record 2.8 million people are out of work due to long-term sickness. Young people have also been left behind with one in eight young people not in education, employment or training, and nine million adults lack the essential skills they need to get on in work.

The UK is also the only major economy that has seen its employment rate fall over the last five years, which has been largely driven by a significant rise in the number of people out of work due to long-term ill health with an outdated employment support system which is ill equipped to respond to this growing challenge.

This White Paper sets out a fundamentally different approach to the employment support system - backed by £240 million of investment - to target and tackle the root causes of unemployment and inactivity, and better join up health skills and employment support based on the unique needs of local communities.  

That includes tackling ill health as the biggest driver of inactivity by fixing the NHS. This includes deploying extra staff to cut waiting lists in areas of high inactivity, expanding access to mental health support, as well as a greater focus on prevention to stop people becoming ill in the first place.

The outdated Jobcentre system will also be transformed into a new national jobs and careers service, focused on people’s skills and careers instead of just monitoring and managing benefit claims. Mayors and councils will be empowered to join up local work, health and skills support in ways that meet the specific needs of their local areas.

The government is also delivering a new Youth Guarantee so every young person has access to education or training to help them find a job and transforming the Apprenticeship Levy in England into a more flexible Growth and Skills Levy backed by £40 million to expand opportunities for young people to develop skills and get into work.

An independent review will also be launched into how employers can be better supported to employ people with disabilities health conditions, and to keep them in the workplace, ensuring that more people can benefit from a sense of dignity, purpose and financial independence.

Building on these reforms, the government will bring forward measures to overhaul the health and disability benefits system so it better supports people to enter and remain in work and to tackle the spiralling benefits bill. A consultation will be published in Spring as part of a commitment to put the views and voices of disabled people at the heart of any policy changes that directly affect them.

The driving purpose behind this new approach is to enable everyone to have the opportunity of secure, rewarding and fulfilling work. 

The Secretary of State, Liz Kendall MP said: "To get Britain growing, we need to get Britain working again. Our reforms will break down barriers to opportunity, help people to get into work and on at work, allow local leaders to boost jobs and growth, and give our children and young people the best opportunities to get on in life.

"The Get Britain Working White Paper shows that this Government stands unashamedly for work. We will make sure everyone, regardless of their background, age, ethnicity, health, disability or postcode can benefit from the dignity and purpose work can bring.

"We can build a healthier, wealthier nation – driving up employment and opportunity, skills and productivity – while driving down the benefit bill."

The employment reforms will be underlined by the principle that people who can work, will be expected to work with clear consequences if they don’t properly engage with the government’s employment support offer. The fundamental principles of reform set out in the white paper include:

Fixing the NHS and Tackling economic inactivity caused by ill health

A quarter of all people aged 16-64 have a long-term health condition that limits their day-to-day activities with disabled people nearly three times more likely (than non-disabled people) to be economically inactive. Given the strong evidence on the health benefits of good work, extra capacity will be deployed to reduce waiting lists in 20 NHS Trusts across England with the highest levels of economic inactivity.

The government is providing an additional £22.6 billion of resource spending in 2025-26 for the Department of Health and Social Care. This will support the NHS in England to deliver an additional 40,000 elective appointments a week and make progress towards the commitment that patients should expect to wait no longer than 18 weeks from referral to consultant-led treatment.

The Government will deliver an additional 8,500 new mental health staff and also expand access to Individual Placement and Support (IPS) for severe mental illness, reaching 140,000 more people by 2028/29. On top of this, the Government will take a prevention first approach through an expansion of Talking Therapies, a landmark Tobacco and Vapes Bill and a range of steps to tackle obesity.

The White Paper sets out how the Government will invest £125 million in eight areas across England and Wales, to mobilise local work, health and skills support – so everyone who wants to work can get the joined-up support they need. This includes funding in three of the trailblazer areas for NHS accelerators to stop people falling out of work completely due to ill health. The three areas will be the North East, South Yorkshire and West Yorkshire.

These eight trailblazers will be at the forefront of designing how locally joined-up support will work in practice across England and Wales.

Creating a new National Jobs and Careers Service to help people into work

Jobcentres across Great Britain will be overhauled and in England will be brought together with the National Careers Service. This will be kickstarted by £55 million of investment, to help people get into work, stay in work, build skills and progress in their career.

A radically improved digital offer will be trialled to bring Jobcentres into the 21st century, with the DWP using the latest technologies and AI to provide up-to date information on jobs, skills and other support and to free up Work Coach time.

Staff at Jobcentres will have more flexibility to offer a more personalised service to jobseekers – moving away from the ‘tick box’ culture. New coaching academies will also be set up to upskill jobcentre staff to better support people into work.

Backed by £55 million, testing and digital design will be carried out into next year to understand how best to bring DWP services online and make them easier to access to deliver tailored support, including CV advice and job adverts. This builds on work already underway to give work coaches AI tools so they can find the right information for their customers faster.

Delivering a Youth Guarantee to support young people into work

Every 18-to-21-year old in England will have access to an apprenticeship, quality training and education opportunities or help to find a job under a new ‘Youth Guarantee’.

The White Paper unveils new partnerships with some of Britain’s most iconic cultural and sporting organisations, including the Premier League, Channel 4 and the Royal Shakespeare Company, who will offer work or learning opportunities to inspire and upskill the next generation.

Eight youth “trailblazer” areas will be set up across the country, including in Liverpool, Tees Valley and the East Midlands with £45 million funding to identify those most at risk of falling out of education or employment and match them to opportunities for education, training or work.

To further expand opportunities for young people through the Youth Guarantee, the Government will transform the Apprenticeship Levy in England into a more flexible Growth and Skills Levy by investing £40 million. This will help to deliver new foundation and shorter apprenticeships in key sectors.

These new opportunities will be the responsibility of young people to take them up. In return for these new opportunities, young people will be expected to engage with training or work that’s on offer so no young person is left behind.

An advisory panel will also be set up to put young people at the heart of decision making. There will also be a disability panel set up to ensure the voices of disabled people are at the core of reforms.

This change will deliver greater flexibility for employers and learners, aligned to the Governments Industrial Strategy, while rebalancing the offer so that more apprenticeships are focused on young people.

Empowering local mayors to shape an effective work, health and skills offer for local people

Up to £15 million will be made available to areas across England not getting a trailblazer so they can develop their own Get Britain Working Plan focused on reducing economic inactivity. Plans will be developed by mayoral authorities where they exist – aligned with their Local Growth Plans – and elsewhere by Local Authorities.

By giving local areas the power and money to design their own Get Britain Working plans, we will deliver real employment opportunities for people who know their communities best. Up to £15 million will be made available to support local areas across England to develop their own plans and to support the trailblazers.

The government will also provide £115 million in funding next year to enable local areas across England and Wales to deliver a new supported employment programme called Connect to Work scheme.

Connect to Work provides voluntary employment offers to people with disabilities, health conditions or complex barriers to work and will support up to 100,000 people a year at full roll out as the first tranche of money from a new Get Britain Working Fund.

Launching an independent review into the role of UK employers in promoting health and inclusive workplaces

Poor workforce health imposes large costs on employers, especially from sickness absence and turnover, while also making it harder for them to find the talent they need to grow and thrive.  There is also compelling evidence about the value of helping people with a health condition or disability to stay in work, including to prevent them becoming economically inactive.

In response, the review will consider what more can be done to enable employers to increase the recruitment and retention of disabled people and those with a health condition and undertake early intervention for sickness absence and increase returns to work.

The review will run until next summer and involve wide-ranging engagement with employers, employees, trade unions, health experts, and disabled people and those with health conditions.

It will complement the Government’s Employment Right’s Bill, which will tackle job insecurity and expand flexible working.

Industry reaction

Commenting on the the DWP ‘Get Britain Working’ white paper, Stephen Greene CBE, Director of UK Year of Service, said: “We cannot continue to be satisfied with low productivity and a stagnant economy. Therefore, I’m delighted the government is taking tangible steps toward trying to change that of which these plans will play a key part. Giving young people the chance not just to properly contribute to but lead a thriving and productive nation is an absolute non-negotiable. It’s not an easy task, though. Mobilising this group, through a joined-up approach that addresses the causes and symptoms of economic inactivity, from ill health to a lack of visible pathways towards a profession, will require excellent collaboration between government and business. One built on harnessing the power of local and regional authorities to deliver joined up support that meets people where they are and providing them with a range of paths to follow. Done well, this approach will see the next generation fulfil its potential and be the engine room of this country’s future economic success.”

UK Year of Service places 16–24-year-olds in paid jobs in businesses, charities, and social purpose organisations for 9-12 months. It has over 60 engaged elected politicians, 140 business partners including the National Grid, and 75 programme delivery partners. 

Becci Newton, Director of Public Policy Research at the Institute for Employment Studies, said: “The Get Britain Working White Paper brings a welcome focus on overcoming worklessness and improving outcomes for young people and adults, and we are pleased that much of the proposed reform chimes with our own research for the Commission on the Future of Employment Support.

“While not specific on the details yet, the White Paper’s focus on rights and responsibilities brings a welcome return to a welfare system that meets young people halfway. We have seen success with the New Deal for Young People and the Activity Agreement Pilots for 16-17s under the former Labour government. The offer of careers support, tailoring to health and wellbeing and ensuring young people have the skills employers are looking for should be an attractive offer to motivate young people to get active.

“The plans to build greater integration between employment support, careers guidance, and connecting with skills demand in local areas should create a step-change, enabling a personalised approach to capitalise on people’s capabilities and support entry and progression into good, meaningful work.

“Too many people have been left behind, unable to find good quality work matched to their skills and capabilities. A more personalised approach could change their experience and make a real difference to employment outcomes.”  

Peter McGettrick, Chairman of British Safety Council, said: “Even before the pandemic, numbers of people out of work with long-term health conditions was on the rise, and the trend has only continued, so it is good to see this concerted attempt by the Government to support people into work and help them to remain there. Whether or not it can deliver on its promises remains to be seen, but we need a fresh approach to this serious issue. Worsening health outcomes and rising levels of economic inactivity contribute to low productivity in the UK, making it harder to deliver growth.

“We welcome the Government’s renewed focus on the link between work and health, as well as an independent review of how employers can be supported to employ people with disabilities and health conditions, and to help them to stay in work. Listening to individuals’ views and needs will be vital here, as well as to employers. Given that the health of the workforce and the nation are so inextricably linked, we would like the Government to go further and create a National Wellbeing Strategy, led by a Minister for Wellbeing, so we can put people’s wellbeing at the heart of all Government policy, especially economic growth.”