Community and Third Sector Organisations: Employment

Richard Baker Excerpts

Monday 10th February 2025 Commons Chamber

[Paulette Hamilton]

My hon. Friend makes a valuable point, and I absolutely agree with what he says.

The commitment of the partner organisations in my constituency has been the driving force behind our shared vision, and I take this opportunity to pay tribute to them. I am sure the Minister will join me as I extend my heartfelt thanks. However, progress does not come without its challenges.

[Richard Baker (Glenrothes and Mid Fife) (Lab)]

My hon. Friend has focused on the benefits of partnerships. Does she agree that employability partnerships led by third sector organisations have been shown to be more successful than traditional approaches to employability support, because they involve organisations with a wide range of expertise? Similarly, in Scotland, we have the All In partnerships led by the disability charity Enable Works, for which I used to work. Fife Gingerbread in my constituency works very successfully in partnership with other organisations to deliver employability support to lone parents.

[Paulette Hamilton]

I absolutely agree with my hon. Friend. It is so important for us to work together to get what we need for our local communities.

--- Later in debate ---

[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.