Employment: Economic Growth

(asked on 18th December 2024) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what estimate she has made of the impact on economic growth of the measures announced in the Get Britain Working White Paper.


Answered by
Alison McGovern Portrait
Alison McGovern
Minister of State (Department for Work and Pensions)
This question was answered on 10th January 2025

The trend of economic inactivity is a long-term challenge; the UK is the only country in the G7 with an inactivity rate higher than before the pandemic. Building a thriving labour market, reducing economic inactivity and increasing the number of people in work is central to growing the economy.

Fundamental reforms announced in the Get Britain Working white paper will help us achieve the bold, long-term ambition of an 80% employment rate, meaning over two million more people in work and the UK as one of the top performing labour markets in the OECD.

Backed by £240m of funding announced in the Budget, the White Paper sets out ambitious reform outlined in three interconnected parts:

  • a new jobs and careers service, bringing Jobcentre Plus together with the National Careers Service in England. This new service will support more people into work and help them get on in work, including through an enhanced focus on skills and careers, and will be kickstarted by an initial £55m of funding for tests and trials next year. It will be open to all, helping the 890,000 people who have left the workforce since the pandemic and the 1.9 million who may wish to join it, back into the labour market.
  • a new Youth Guarantee for all 18-21 year olds in England, to ensure they have an offer of education, training or help to find work. This is backed by £45m in funding for trailblazers across eight mayoral authorities in England starting next year to help bring the 946,000 young people not in education, employment or training back into the workforce.
  • £15m to support the development of local Get Britain Working plans for areas across England. These plans will set out how economic inactivity will be tackled at a local level, led by Mayors and local areas. An additional £125m will fund eight trailblazers across England and Wales to tackle economic inactivity through increased engagement and tailored approaches because we know that one size does not fit all and inactivity rates vary between areas, with the North East at 26.8% and the South West at 17.9%.
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