Select committee: Work and Pensions Committee

Recommendation 25

First Report - DWP’s preparations for changes in the world of work Published 29 Jun 2021 Paragraph 140 Addressed to Department for Work and Pensions
Recommendation (the committee's words)
The evidence we have heard suggests that changes such as automation are unlikely to lead to mass unemployment. That does not mean that there will be no displacement at all, especially as job roles and requirements change, and it is vital that people who do find themselves out of work have access to a robust safety net. Some people DWP’s preparations for changes in the world of work 53 have argued that a Universal Basic Income could act not only as a safety net for the unemployed, but also provide people with underlying financial security should they decide to undertake training or start their own business. A Universal Basic Income would, however, be extremely expensive, and would not target support at people who need it most. Instead, it risks diverting resources away from the existing social security system and other vital public services. We are not convinced that it would be the right way forward for social security in the UK. Instead, we recommend that the Department should focus its efforts on ensuring that the value of benefit payments under the current system are sufficient to meet claimants’ basic needs.

From: Work and Pensions Committee, First Report - DWP’s preparations for changes in the world of work (HC 216), paragraph 140, 29 June 2021

Government response

The government responded to the whole report on 12 November 2021 (deadline 29 August 2021).

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government responds mainly by describing existing cross-departmental work, with BEIS, DfE and the ONS cited for several areas, and says it has no plans for Universal Credit claimant markers.

  • On the recommended labour market strategy, DWP says it is "working with other departments, particularly DfE and BEIS", and that BEIS "is the department with responsibility for employment rights".
  • On the Skills and Employment Survey, it says it is "solely a decision for the academics and ESRC" whether the survey runs again, rather than committing DWP funding.
  • On assistive technology, the Disability Unit "will invest up to £1m in 2021 to 2022" in a new Centre for Assistive and Accessible Technology, with findings to the Unit "by March 2022" and progress reported by summer 2022.
  • On paternity leave reform, it says BEIS is analysing survey data and 2019 consultation responses, and that this "will inform government policy on parental leave and pay going forward".

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