The Pathways to Work Commission Report: Tackling Economic Inactivity

Speaking at the official launch of the Pathways to Work Commission Report in Barnsley on 23rd July 2024, the Work and Pensions Secretary, Liz Kendall, announced a series of fundamental reforms to the way unemployment and economic inactivity will be systematically addressed by the government going forward.

You can read her full Getting Britain Working speech and the accompanying DWP press release detailing the blueprint for fundamental reform to change the DWP from a ‘Department of Welfare’ to a ‘Department for Work’.

The Scale of the Challenge

Ms. Kendall highlighted several critical headline figures that underscore the urgent need for reform:

• 2.8 million people are currently out of work due to ill health or disability.
• 1 in 8 young people are currently not in education, employment, or training (NEET).
• Far too many individuals are trapped in low-paid, poor-quality work, with little prospect of improving their circumstances. Alarmingly, of those in low pay in 2006, only one-in-six managed to escape it a decade later.

In response, Ms. Kendall spoke passionately of the “employment opportunity unleashed for all.” This forms part of the government’s long-term, strategic ambition to reach an 80% employment rate—focusing not just on job quantity, but on better quality of work, higher earnings, and empowering local leaders to tailor localized schemes that genuinely help people back into the workforce.

Key Findings from the Pathways to Work Commission

The Pathways to Work Commission was initially launched in July 2023 to thoroughly examine the disparities between those recognized as officially ‘unemployed’ and the ‘economically inactive’, seeking sustainable solutions to barriers faced by job seekers and employers within the local labour market.

The comprehensive report identified several crucial findings and recommendations:

• National Strategy & Devolution: Helping anyone who wants to work requires sweeping national changes, including a dedicated strategy to raise labour market participation, more devolution to empower local areas like Barnsley, and fresh expectations placed upon employers. It also demands a fundamental review of our health, education, and benefits systems.
• Targeted Local Support: There must be focused support for people who have been out of work and wish to re-enter the jobs market. This means building local capacity to identify and address specific barriers effectively.
• One-to-One Professional Support: Job seekers need dedicated support built on a therapeutic relationship that helps them confidently address barriers, realise their potential, and access the right opportunities.
• Innovating with Businesses: We must innovate alongside businesses to create tailored training and roles for those who’ve been out of work long-term. This builds employability while actively incentivising and de-risking recruitment for businesses.
• Data-Driven Approaches: Implementing intelligence-led performance monitoring that integrates with current reporting arrangements to drastically reduce duplication and administrative burdens on support providers.
• Focus on Prevention: Supporting people before they fall out of work is key to a sustainable system. This approach also ensures that young people are properly supported to stay in education, training, or work after leaving school.

For a detailed breakdown of these findings, you can download the full Pathways to Work Commission Report (PDF) here.