Community and Third Sector Organisations: Employment

Alison McGovern Excerpts

Monday 10th February 2025 Commons Chamber

[The Minister for Employment (Alison McGovern)]

I thank and pay tribute to my hon. Friend the Member for Birmingham Erdington (Paulette Hamilton), who brought the debate to the House this evening. All hon. Members will agree that her passion and commitment to her constituency and this subject shine through. I can only say what an absolute honour it was to visit her constituency to discuss the work of the north Birmingham economic recovery board. I will come shortly to the situation in Birmingham and the approach that my hon. Friend recommends that the Government take. I hope that her remarks at the end of her speech on the purpose of politics and the role we all must play in giving everybody a chance and an opportunity in our society would be supported across the House, but she makes the case well for that approach.

And so to Birmingham. This debate is important for many reasons, not least because some parts of our country suffer much worse than others with poor employment outcomes. The Government are committed to moving towards our goal of an 80% employment rate, though some places in our country are already there. Unfortunately, that is not the case in Birmingham where the employment rate is around just 66%. That is not acceptable because when some parts of our country fall behind economically, it is bad for those places and bad for all of us, because it means that some people in our country cannot play their full role in our economic growth.

Economic inactivity is also higher than the average, and that is why our reform plans take a different approach. We are no longer doing the same thing everywhere, but trying to tailor and personalise our employment support to where people are and what they need.

[Richard Baker]

Does the Minister agree that one of the challenges with previous models of employability support is that they have not been tailored and they have not meet the needs of people for sustained support in that employment? Does she agree that one of the benefits of what my hon. Friend the Member for Birmingham Erdington (Paulette Hamilton) said is that those third sector partnerships, which bring together organisations with great expertise in certain areas in a consortium model, provide the best opportunity for a one-stop shop for people to get the tailored support that will sustain them in employment, as well as helping them find that job in the first place?

[Alison McGovern]

My hon. Friend is right. When I was in Erdington, my Department for Work and Pensions colleagues and I met the college, Witton Lodge and other community partners. By bringing those people together around a common goal, we can change the fortunes of a place. As I will explain in a moment, that approach is knitted into what we set out in the White Paper in November.

I want to mention my DWP colleague Lucy Divers, who has worked as part of the north Birmingham economic recovery board to bring DWP right to the heart of this local community approach. That is the right way to have a partnership where people can bring their different expertise to tackling the ingrained problems of economic disadvantage and unemployment. I met colleagues in Erdington, and we talked through the various challenges. I was struck by the importance of skills and the need to address the skills deficit, but we also need to ensure that young people—Birmingham is quite a young city—have access to the best possible jobs.

I want to mention a few ways in which the Government have redesigned employment support to try to bring this new localised approach to enable us to work better with community and third sector partners. The last Parliament saw the biggest increase in economic inactivity in nearly 40 years. We remain the only G7 country with a higher rate of economic inactivity now than before the pandemic. We have a near-record 2.8 million people out of work due to long-term sickness, and, tragically, almost a million young people are not in education, employment or training and many more are stuck in low-paid work. This is an absolute crisis. It is the biggest unemployment crisis in our generation.

We know that we have to learn the lessons of the failures of the past 14 years. We cannot keep going in the same direction; we needed to change course. For me, that means localising our services, so we pay attention to the specific features of each place that we are trying to help.

[David Williams]

On localised services, other programmes of years gone by, such as the Work programme, had big contract package areas and moved towards nationalised models, and a lot of voluntary groups would describe themselves as “bid candy”—they were included as subcontractor partners, but they did not have any ownership of how services were delivered on the ground. Does my hon. Friend agree that we need to move away from that model and towards understanding what local groups, which are rooted in their communities, can do to really play their part?

[Alison McGovern]

It is testament to the importance of this issue, and to how strongly Members feel about tackling unemployment in their constituencies and working across and in partnership with community groups, that so many have stayed for the Adjournment in order to make detailed points, as my hon. Friend has, on a matter that is the biggest challenge in some constituencies. I thank him for bringing that expertise and hope that we can continue this conversation as the DWP moves forward with our change programme.

As I was saying, the challenge is great. We need a totally different approach and much more local collaboration. That is why our “Get Britain Working” plan sets out three major reforms. The first is creating a new jobs and careers service that will test, trial and develop different ways of working to get much closer to communities. We are already seeing work coaches take their role out into communities to connect with people where they are, using the expertise of local community groups. We have also set up a number of trailblazers, including in the west midlands, to collaborate with the NHS and other organisations to give young people and those who are out of work because of ill health the support they need to get back into work, develop their talents and take up the opportunities on offer.

I know that we will not do that without better support for employers. That is one of the reasons I was so heartened to have a conversation in Erdington about the different employers and opportunities in Birmingham and across the midlands, and about ensuring that the DWP plays its role in serving employers better and getting the best-quality roles into jobcentres so that they are available to people who might otherwise be overlooked. That has been a crucial part of the north Birmingham economic recovery board, about which I learned, and it is a great example of how local leaders can take action, through work with employers, to get to the heart of unemployment and inequality.

I will respond to one point raised by my hon. Friend the Member for York Central (Rachael Maskell) about enabling community groups and third sector organisations to test the efficacy of their work. She comes from the great social research city of York, so there is nobody better to make that point. Organisations can use the DWP’s data lab to establish the effectiveness of their employment programme. I encourage third sector organisations, charities and beyond to work with us to get to the heart of how we can effectively support people into work and into better work.

[Tom Collins (Worcester) (Lab)]

I am encouraged by the collaborative approach that the Minister is describing. Business and the third sector have demonstrated the power of an approach that involves just beginning and focusing on the person—the end user—and then iterating rapidly. That responsive, agile approach is really effective. Does she agree that the Government need to adopt that approach more and more as we try to address these big challenges?

--- Later in debate ---

[Alison McGovern]

I thank my hon. Friend for his intervention. I think he has described the approach that the Chancellor of the Duchy of Lancaster has recommended to us all: testing and trialling things quickly and reviewing what works and what does not work, and trying to respond swiftly and change quickly, rather than setting out a huge great plan that takes years to develop. That is an approach that the DWP is trying to model now. Only this morning, I was in Bolton with some work coaches who have developed a jobcentre on wheels—a van that we can take out to communities. They have done that pretty swiftly, and as my hon. Friend has described, they are trying to work out what works on the ground there so that they can feed back to us.

I will conclude now, Madam Deputy Speaker, because I fear that collectively, all of us in the Chamber could probably speak about this topic for about three hours uninterrupted. We had better not do that, but I want to finish by saying how important it is that we have had this debate this evening. The “Get Britain Working” plan sets out the requirement for all places to have such a plan for themselves, so that they can work out where their employment challenges are and work collectively to address them. Everywhere in our country must have a plan for growth, and our reforms nationally are in the spirit of the local action that we have seen in the north Birmingham area. Economic growth needs us all to pull together, and we know that when we do so, the benefits will be widely spread.

Question put and agreed to.