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'Back to Work Plan' aims to tackle long-term unemployment in the UK

17 November 2023

The UK aims to tackle long-term unemployment with its newly launched 'Back to Work Plan'.

According to Chancellor Jeremy Hunt and the Secretary of State for Work and Pensions Mel Stride, the plan consists of a package of employment-focused support to help 'people to stay healthy, get off benefits and move into work' as part of the upcoming Autumn Statement.

The plans set out how the government will tackle long-term unemployment by supporting Universal Credit claimants to find work while strengthening work search requirements for job seekers through all stages of their Universal Credit claim.

"As a result of these reforms, no claimant should reach 18 months of unemployment in receipt of their full benefits if they have not taken every reasonable step to comply with Jobcentre support," the government stated.

After seven weeks into their Universal Credit claim, the government will test additional Jobcentre Support in England and Scotland, testing how intensive support can help claimants into work who remain unemployed or on low earnings.

Furthermore, it will extend and expand the Restart Scheme in England and Wales for two years – expanding tailored, intensive support to people who have been on Universal Credit for more than six months rather than nine, helping them to tackle barriers to entering employment through coaching, CV and interview skills, and training. The scheme will be extended for two years until June 2026.

The plans also set out a claimant review point. Universal Credit claimants still unemployed after the 12-month Restart programme will participate in a claimant review point: a new process whereby a work coach will decide what further work search conditions or employment pathways would best support a claimant into work.

The government will also roll out mandatory work placement trials – through the claimant review point, claimants who have not yet moved into work by the end of the Restart Scheme will be required to accept a job or to undertake time-limited work experience or other intensive activity to improve their employability prospects. Failure to do so at this stage will lead to immediate sanction, with the removal of the Universal Credit standard allowance.

There will also be stricter sanctions for those who should be looking for work but are not – including targeting disengaged claimants by closing the claims of individuals on an open-ended sanction for over six months and solely eligible for the Universal Credit standard allowance, ending their access to additional benefits such as free prescriptions and legal aid; rooting out fraud and error using the government's Targeted Case Review to review the Universal Credit claims of disengaged claimants on an open-ended sanction for over eight weeks, ensuring they receive the proper entitlement; digital tools to track claimants' attendance at job fairs and interviews. The latest published data shows that 300,000 people had been unemployed for over a year in the three months to July.

Ministers are also planning to trial reforms to the fit note process to make it easier and quicker for people to get specialised work and health support, with improved triaging and signposting. Since the pandemic, the number of people inactive in the UK due to long-term sickness or disability has risen by almost half a million to a record high of 2.6 million, with mental health, musculoskeletal conditions and heart disease being some of the leading causes.

Hunt said, "We're serious about growing our economy, and that means we must address the rise in people who aren't looking for work, especially because we know so many of them want to and with almost a million vacancies in the jobs market the opportunities are there."

"These changes mean there's help and support for everyone, but for those who refuse it, there are consequences too. Anyone choosing to coast on the hard work of taxpayers will lose their benefits," Hunt said.

Stride said, "We are rolling out the next generation of welfare reforms to help more people start, stay and succeed in work. We know the positive impact work can have, not just on our finances, but our health and wellbeing too. So we are expanding the voluntary support for people with health conditions and disabilities, including our flagship Universal Support programme."

"But our message is clear: if you are fit, if you refuse to work, if you are taking taxpayers for a ride – we will take your benefits away," Stride added.

Critics of the plan include Liberal Democrat Treasurer Sarah Olney, who said the government seemed more interested in 'penalising people than helping them get back into work.'

James Taylor, director of strategy at the disability equality charity Scope, told The Guardian that the government had promised to transform the lives of disabled people but was instead focusing on penalising them. "[It's] all stick and no carrot. Where is the clear positive vision for disabled people and disability employment?"

Meanwhile, Tony Wilson, the director of the Institute for Employment Studies, said the government ramping up funding for employment support was welcome, but risked being "drowned out by divisive rhetoric around 'coasters' who want to 'take taxpayers for a ride', adding: "This sort of language just pushes people away."

The government is also boosting four key programmes: NHS Talking Therapies, Individual Placement and Support, Restart and Universal Support, to benefit up to 1.1 million people over the next five years and help those with mental or physical health conditions stay in or find work.

The new WorkWell service, announced in the  Spring Budget and delivered by the Departments for Work and Pensions and Health and Social Care, was also formally launched yesterday and will support almost 60,000 long-term sick or disabled people to start, stay and succeed in work once rolled out in approximately 15 areas across England. The prospectus launched in the coming weeks will provide information for all Integrated Care Systems across England to develop their localised work and health strategy.

Plans also include expanding key health and employment programmes to benefit over half a million people over the next five years and help those with mental health conditions stay in or find work.

Kate Shoesmith, Recruitment and Employment Confederation Deputy Chief Executive said the government's announcements "will help the Restart scheme to keep making a real difference to people's work and life chances."

Shoesmith added, "It contributes to efforts to overcome our labour and skills shortages and to further growing our economy. Bringing public and private employment services together is vital to get people into work and not look back. Our own award-winning Restart scheme, which sees recruiters work with employability services provider Maximus, has helped place 1,700 long-term unemployed people into work since 2021."

"We hope the government will persist with its efforts to overcome labour and skills shortages in the lead up to and in the Autumn Statement, such as by announcing a long-overdue growth strategy that brings greater coherence to its policies on skills, welfare to work, infrastructure, mobility and taxation," Shoesmith said.