Recommendations & Conclusions
11 items
2
Recommendation
First Report - DWP’s preparations for c…
Not Addressed
We heard evidence that DWP has not been proactive enough in planning for long- term changes to the world of work, and that it has largely reacted to change instead of planning ahead for a range of different scenarios or developing a long-term strategy. Working with other departments, DWP should …
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We heard evidence that DWP has not been proactive enough in planning for long- term changes to the world of work, and that it has largely reacted to change instead of planning ahead for a range of different scenarios or developing a long-term strategy. Working with other departments, DWP should develop a strategy for how it intends to respond to long-term changes in the labour market. This should set out how the Department will plan for different possible scenarios. The strategy should include how DWP intends to respond to the impact of new technology on the number of available jobs, the skills needed to perform these jobs, and the differential impact that changes could have between sectors, regions and demographic groups.
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Government response AI summary
The government's response focuses on BEIS's commitment to establishing a single enforcement body for employment rights, which is a component of safeguarding workers' rights, but does not address the core recommendation for DWP to develop a comprehensive strategy for long-term labour market changes and the …
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Department for Work and Pensions
3
Recommendation
First Report - DWP’s preparations for c…
Not Addressed
New technology has the potential to enhance employees’ experience of work; for example, by allowing for greater use of remote working and replacing more mundane tasks. However, there is also a risk that technology could have an adverse impact on workers’ rights and wellbeing. The strategy we have recommended should …
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New technology has the potential to enhance employees’ experience of work; for example, by allowing for greater use of remote working and replacing more mundane tasks. However, there is also a risk that technology could have an adverse impact on workers’ rights and wellbeing. The strategy we have recommended should also set out how the Government will safeguard employees’ rights and wellbeing and ensure that available jobs are of good quality.
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Government response AI summary
The government's response describes existing inter-departmental work to identify skills and job demand, but it does not address the recommendation to safeguard employees' rights and wellbeing or ensure job quality in the context of new technology.
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Department for Work and Pensions
4
Recommendation
First Report - DWP’s preparations for c…
Not Addressed
Responsibility for responding to changes in the world of work does not sit with one department. DWP told us that it works with other government departments to help fill roles in sectors where there is growing demand: for example, with DHSC on filling vacancies in social care, or with BEIS …
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Responsibility for responding to changes in the world of work does not sit with one department. DWP told us that it works with other government departments to help fill roles in sectors where there is growing demand: for example, with DHSC on filling vacancies in social care, or with BEIS on jobs in the green economy. We want the Department to be proactive in planning ahead. On top of this work, DWP should take a more strategic approach to engaging with other departments—for example DCMS, as the department responsible for digital, and BEIS—to identify sectors which may face increased demand in the future. We also urge the Department to work closely with MHCLG and other Departments on the Levelling Up programme, including on projects like the Towns Fund and Levelling Up Fund, to ensure that areas most exposed to loss of jobs from automation are prioritised for investment in skills and new jobs.
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Government response AI summary
The government's response lists existing bodies related to AI and data ethics but does not explain how DWP will take a more strategic approach to engaging with other departments or work with MHCLG on the Levelling Up programme, as recommended.
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Department for Work and Pensions
5
Recommendation
First Report - DWP’s preparations for c…
Not Addressed
We welcome the Government’s announcement that it will publish a new AI Strategy later this year that will focus on economic growth through widespread use of digital technologies and on developing every adult’s digital skills. DWP should work closely with DCMS and BEIS on the development of the Strategy. It …
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We welcome the Government’s announcement that it will publish a new AI Strategy later this year that will focus on economic growth through widespread use of digital technologies and on developing every adult’s digital skills. DWP should work closely with DCMS and BEIS on the development of the Strategy. It should ensure that the Strategy sets out how the Government will respond to the impact of AI on the labour market. (Paragraph 36) DWP’s preparations for changes in the world of work 49
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Government response AI summary
The government's response highlights existing bodies like the Office for AI, the Centre for Data Ethics and Innovation, and the AI Council. It does not, however, commit to DWP working closely with DCMS and BEIS on the development of the new AI Strategy or ensuring …
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Department for Work and Pensions
6
Recommendation
First Report - DWP’s preparations for c…
Not Addressed
The Government has committed to introducing an Employment Bill in this Parliament which will “build on existing employment law with measures that protect those in low-paid work and the gig economy”. In our earlier report on DWP’s response to the coronavirus outbreak, we recommended that the Government should bring forward …
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The Government has committed to introducing an Employment Bill in this Parliament which will “build on existing employment law with measures that protect those in low-paid work and the gig economy”. In our earlier report on DWP’s response to the coronavirus outbreak, we recommended that the Government should bring forward the Bill as soon as possible. We were therefore disappointed when the Bill was not included in the Queen’s Speech 2021. Given the significant changes in the employment market over the last decade, we believe it is imperative that the definition of employment is updated and clarified to ensure that workers enjoy the legal status that they are entitled to. This is not only key in protecting workers in times of change but also in ensuring access to skills training provided by or in conjunction with employers. We also urge the Department to work with HM Treasury to ensure the definitions of employment for tax purposes are consistent with those for employment law and to end the tax incentives for disguising employment as self-employment. The Government now says simply that the Bill will be introduced “when the time is right”—but it is not at all clear when that might be. We recommend that the Government should, as a matter of urgency, set out a timescale for when it will introduce the Bill. We also recommend that this be published in draft this session to enable pre-legislative scrutiny of the Bill.
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Government response AI summary
The government's response states that they have shared the recommendations with the ONS, which does not address the core recommendation to set a timescale for the Employment Bill or publish it in draft.
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Department for Work and Pensions
10
Recommendation
First Report - DWP’s preparations for c…
Not Addressed
DWP must ensure that its digital skills offer is accessible and inclusive for disabled people. It should set out how it intends to increase the proportion of disabled people who benefit from its support and commit to publishing data on this.
Government response AI summary
The government highlights the DfE's introduction of a legal entitlement for fully funded digital qualifications (entry level and level 1) for adults with low digital skills, alongside new Essential Digital Skills Qualifications (EDSQs). The response does not specifically address how DWP will ensure its digital …
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Department for Work and Pensions
12
Conclusion
First Report - DWP’s preparations for c…
Not Addressed
The employment gap between White and BAME workers remains too high, despite the Government’s intent to reduce it. There is a risk that the gap will widen if, as some predict, automation affects some ethnic groups more significantly than others. Automation may also have a differential impact on men and …
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The employment gap between White and BAME workers remains too high, despite the Government’s intent to reduce it. There is a risk that the gap will widen if, as some predict, automation affects some ethnic groups more significantly than others. Automation may also have a differential impact on men and women. Women are still underrepresented in STEM fields, which are likely to see rising demand for workers. Women are also more likely to work part-time, with part-time work more common in low paid jobs, which are more likely to be lost to automation. These are complex issues to which there are no straightforward solutions. The impact of changes on different demographic groups will be uneven, and when formulating policy in response to change, the Government will need to draw upon expertise from a diverse range of sources.
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Government response AI summary
The government's response discusses BEIS's evaluation of the Shared Parental Leave and Pay scheme, which is entirely unrelated to the committee's conclusion on employment gaps for BAME workers, the differential impact of automation on men and women, or the need for diverse expertise.
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Department for Work and Pensions
13
Recommendation
First Report - DWP’s preparations for c…
Not Addressed
We recommend that, as part of its commitment to levelling up, the Government should establish a new publicly funded advisory body of experts with a focus on the potential impact of changes in the world of work on different groups in the labour market. The Government should use the now-closed …
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We recommend that, as part of its commitment to levelling up, the Government should establish a new publicly funded advisory body of experts with a focus on the potential impact of changes in the world of work on different groups in the labour market. The Government should use the now-closed UK Commission for Employment and Skills as a model for what it could look like: that is, a publicly funded but independent body whose membership could consist of employers, trade unions, training providers and representatives from the third sector. The role of this new body should be to produce intelligence about the impact that changes such as automation may have on different demographic groups, including those that are most likely to experience the effects of these changes, and provide advice and make policy recommendations to the Government on that basis. It should work with and provide guidance to employers, including about how they can increase the diversity of their workforce through changes to their recruitment practices, such as encouraging more employers to adopt name- blind recruitment. (Paragraph 66) Short-term changes
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Government response AI summary
The government response discusses introducing markers on the Universal Credit system to gather claimant characteristics for tailored support, and highlights existing evaluation processes for Kickstart and Restart programmes. This does not address the recommendation to establish a new advisory body.
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Department for Work and Pensions
16
Recommendation
First Report - DWP’s preparations for c…
Not Addressed
Unemployment has risen because of the pandemic, but some sectors have been hit harder than others. Sectors which have seen the highest proportion of job losses are those that have been “shut down” in response to the pandemic, such as arts and leisure, retail and passenger transport. Some groups of …
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Unemployment has risen because of the pandemic, but some sectors have been hit harder than others. Sectors which have seen the highest proportion of job losses are those that have been “shut down” in response to the pandemic, such as arts and leisure, retail and passenger transport. Some groups of people are also more likely to have lost their jobs, including disabled people, young people, women, low-paid workers and workers from BAME backgrounds. We welcome the announcement of two new employment support schemes: Restart, aimed at the long-term unemployed, and Kickstart, aimed at young people on Universal Credit. But neither scheme has specific provisions for disabled people, and we have heard concerns from disability organisations about how well they will work for disabled people in practice. DWP must ensure that both schemes meet the needs of groups who are particularly likely to have lost out during the pandemic. To do that, it will need to collect better data than it currently has.
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Government response AI summary
The government's response describes existing engagement with local stakeholders to understand labour market issues but does not address how the Kickstart and Restart schemes will specifically meet the needs of disabled people or commit to collecting better data.
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Department for Work and Pensions
18
Recommendation
First Report - DWP’s preparations for c…
Not Addressed
We reiterate our recommendation, first made in October 2020, that the Department should immediately make improvements to the Universal Credit system to enable it to record and use data about claimants’ characteristics. Without those improvements, the Department cannot effectively measure in real time how well the Restart and Kickstart schemes …
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We reiterate our recommendation, first made in October 2020, that the Department should immediately make improvements to the Universal Credit system to enable it to record and use data about claimants’ characteristics. Without those improvements, the Department cannot effectively measure in real time how well the Restart and Kickstart schemes are working for different groups. The Department should set out, in response to this report, when it expects to achieve this.
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Government response AI summary
The government's response discusses increasing Disability Employment Advisers and reviewing their roles, but it does not address the recommendation to improve the Universal Credit system for recording claimant characteristics data or provide a timeline for such improvements.
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Department for Work and Pensions
22
Recommendation
First Report - DWP’s preparations for c…
Not Addressed
It is essential that Work Coaches have a detailed understanding of the local labour market. Business engagement is a key route to understanding the changing jobs market and the nature of skills that employers are looking for. We heard evidence, however, that Work Coaches often do not have the capacity …
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It is essential that Work Coaches have a detailed understanding of the local labour market. Business engagement is a key route to understanding the changing jobs market and the nature of skills that employers are looking for. We heard evidence, however, that Work Coaches often do not have the capacity for business engagement on top of their other duties, and that it is not considered a priority. The Minister acknowledged this issue and said that she is keen to address it. DWP should ensure that new Work Coaches receive specific training on business engagement. All Work Coaches should be encouraged to and given time to undertake business engagement alongside their other duties. This should be incorporated into Work Coaches’ performance objectives and considered during performance reviews.
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Government response AI summary
The government states Work Coaches are supported by dedicated Employer and Partnership Managers and Employer Advisers who handle direct business engagement. It also notes that Work Coaches receive comprehensive training that includes acquiring a working knowledge of their local labour market, but does not commit …
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Department for Work and Pensions