Source · Select Committees · Work and Pensions Committee
Recommendation 19
19
Acknowledged
Paragraph: 124
Expand eligibility for support programmes to include economically inactive people not receiving benefits.
Recommendation
The UK labour market is facing high rates of economic inactivity, driven up as a result of the pandemic and the ending of freedom of movement. Although rates have now somewhat recovered, there are many more people outside the labour market than prior to the Covid-19 pandemic. Whilst DWP offers a range of support for unemployed people who are in receipt of benefits there is almost no support Plan for Jobs and employment support 83 available to individuals who are economically inactive and outside the benefit system. We are concerned that a lot of people who are not in work but are capable of working, are not being supported to re-enter the labour market. DWP should expand the eligibility requirements of future support programmes that target groups with high levels of economic inactivity to include people who are not in receipt of benefits.
Government Response Summary
The government highlights the UK Shared Prosperity Fund for local investment and outlines an additional comprehensive cross-government support package, including the WorkWell Partnerships Programme, aimed at increasing workforce participation for economically inactive groups. However, it does not explicitly commit to expanding DWP's own programme eligibility for non-benefit recipients as requested.
Paragraph Reference:
124
Government Response
Acknowledged
HM Government
Acknowledged
UKSPF is a Department for Levelling Up, Housing and Communities fund. UKSPF provides £2.6 billion of new funding across the UK for local investment by March 2025 and was clearly identified as the key source of local funding to tackle economic inactivity, however it is for lead authorities to determine how UKSPF is best invested locally. Before the restrictions were lifted, lead authorities in England were given flexibility to invest in people and skills interventions in 2022–23 and 2023–24 where the voluntary and community sector were at risk of funding from the European Social Fund ending before 2024–25. The Flexible Support Fund (FSF) is a discretionary fund with a value of £60m per year that jobcentre staff can use to help benefit claimants move into or progress in work or to move closer to the labour market. It is available to local teams to purchase services to tailor support to the needs of individuals and the local area as identified by local jobcentre staff. As such it is not the most appropriate mechanism for supporting economically inactive individuals, many of whom will not be on benefits or in regular contact with Jobcentre Plus and are often supported through voluntary, community and social enterprise organisations which local areas are empowered to fund through their UKSPF allocations. At Spring Budget 2023 we have announced an additional comprehensive package of cross-government support targeted at increasing workforce participation and reducing economic inactivity. This includes investment aimed at groups who are more likely to be or at risk of becoming economically inactive, including those who are long term sick or disabled, parents and over 50s. For example, we have developed the WorkWell Partnerships Programme. This pilot programme will deliver integrated work and health support to disabled people and people with health conditions, who want help to remain in, return to or take up work.