THE government on Tuesday (26) announced significant employment reforms aimed at addressing unemployment, economic inactivity, and skills shortages across the country.
Work and pensions secretary Liz Kendall unveiled the ‘Get Britain Working White Paper’ with plans to improve workforce participation and achieve an 80 per cent employment rate. These measures are backed by a £240 million investment, a statement said.
The white paper proposes to address employment challenges by integrating health, skills, and job support tailored to local needs.
The changes include expanding mental health services and cutting NHS waiting times in regions with high economic inactivity. Jobcentres will be revamped to prioritise skills and career development rather than solely managing benefit claims.
Prime minister Sir Keir Starmer said the reforms address long-standing issues in employment and healthcare, offering meaningful solutions to improve lives and boost the economy.
“We’re fixing the NHS, modernising Jobcentres, and giving young people the skills they need for future jobs. We’re working with businesses and employers to better support people with disabilities and health conditions to stay and progress in work, and it doesn’t stop there," he said.
"Helping people into decent, well-paid jobs and giving our children and young people the best start in life - that’s our plan to put more money in people’s pockets, unlock growth and make people better off."
A youth guarantee will ensure all 18- to 21-year-olds in England have access to apprenticeships, training programmes, or job opportunities.
The reforms come as nearly 1.5 million people are unemployed, over nine million are economically inactive, and 2.8 million are out of work due to long-term illness. These factors particularly affect young people, with one in eight not in education, employment, or training.
Under the plans, the government plans to increase NHS capacity, including hiring 8,500 new mental health staff, expanding access to mental health services, and prioritising preventive healthcare.
According to a statement, the £22.6 billion allocation for the Department of Health and Social Care will fund additional treatments and initiatives to reduce waiting times.
The Youth Guarantee scheme aims to provide education or employment opportunities for all young adults. Partnerships with organisations such as the Premier League and Channel 4 will offer work and training placements.
Additionally, £40m will be invested to transform the Apprenticeship Levy into a flexible Growth and Skills Levy, supporting shorter apprenticeships and skill-building programmes.
Eight regions, including Liverpool and Tees Valley, will receive £45m to pilot tailored support for young people at risk of falling out of education or employment.
Kendall 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."
Local authorities and mayors will receive funding to design employment programmes suited to their regions. A £115m Connect to Work scheme will support up to 100,000 people with disabilities or health conditions annually.
London mayor Sadiq Khan said, "These plans will ensure that young people and those who need extra support due to their health reap the benefits of future economic growth. After 14 years we finally have a government that understands the problems and opportunities London faces and is working hand in hand with us to ensure that everyone is given access to opportunities and skills."
A consultation on changes to the benefits system will be launched in the spring, aiming to better support people entering or staying in work, the statement added.
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