The Department for Work and Pensions has unveiled the biggest reforms to employment support for a generation with the publication of its Get Britain Working white paper, as the government aims to achieve an ambitious 80% employment rate.

The white paper outlines a “fundamentally different” approach to the employment support system –  backed by £240 million of investment – to tackle the root causes of unemployment and inactivity, joining up health, skills and employment support based on local communities’ unique needs.

“Outdated” Jobcentres will be transformed into a new national jobs and careers service, focused on people’s skills and careers instead of the monitoring and management of benefit claims.

The government is also delivering a new “Youth Guarantee” so every young person has access to education or training to help them find a job, and the apprenticeship levy in England will be transformed into a more flexible Growth and Skills Levy backed by £40 million to expand opportunities for young people to develop skills and get into work.

An independent review will also be launched into how employers can be better supported to employ people with disabilities and health conditions, and to keep them in the workplace.

Work and pensions secretary Liz Kendall said: “To get Britain growing, we need to get Britain working again. Our reforms will break down barriers to opportunity, help people to get into work and on at work, allow local leaders to boost jobs and growth, and give our children and young people the best opportunities to get on in life.

“The Get Britain Working white paper shows that this government stands unashamedly for work. We will make sure everyone, regardless of their background, age, ethnicity, health, disability or postcode can benefit from the dignity and purpose work can bring.

“We can build a healthier, wealthier nation – driving up employment and opportunity, skills and productivity – while driving down the benefits bill.”

Figures show almost 1.5 million people are unemployed, over 9 million people are inactive, and a record 2.8 million people are out of work due to long-term sickness. Young people have also been left behind with one in eight young people not in education, employment or training, and 9 million adults lacking the skills they need to get on in work.

Meaningful change

Prime Minister Keir Starmer said: “From the broken NHS, flatlining economy, and the millions of people left unemployed and trapped in an inactivity spiral – this government inherited a country that simply isn’t working. But today we’ve set out a plan to fix this. A plan that tackles the biggest drivers of unemployment and inactivity and gives young people their future back through real, meaningful change instead of empty rhetoric and sticking plaster politics.”

He added: “Our reforms put an end to the culture of blaming and shaming people who for too long haven’t been getting the support they need to get back to work. Helping people into decent, well-paid jobs and giving our children and young people the best start in life – that’s our plan to put more money in people’s pockets, unlock growth and make people better off.”

The DWP highlighted that the UK is the only major economy that has seen employment fall over the past five years, largely driven by the number of people out of work due to long-term ill health.

The government said it will fix the NHS, including deploying extra staff to cut waiting lists in areas of high inactivity, expanding access to mental health support, and focusing on prevention to stop people from becoming ill in the first place.

It will deliver an additional 8,500 new mental health staff and also expand access to Individual Placement and Support (IPS) for severe mental illness, reaching 140,000 more people by 2028-29.

It will bring forward measures to overhaul the health and disability benefits system so it better supports people to enter and remain in work and to tackle the spiralling benefits bill. A consultation will be published in Spring as part of a commitment to put the views and voices of disabled people at the heart of any policy changes that directly affect them.

The white paper outlines £125 million investment in eight areas across England and Wales, to mobilise local work, health and skills support, including funding in three of the trailblazer areas for “NHS accelerators” to stop people falling out of work completely due to ill health.

National Jobs and Careers Service

Jobcentres across Great Britain will be overhauled and in England will be combined with the National Careers Service, with £55 million of investment.

A radically improved digital offer will be trialled with the DWP using the latest technologies and AI to provide up-to-date information on jobs, skills and other support and to free up work coaches’ time.

Staff at Jobcentres will have more flexibility to offer a more personalised service to jobseekers – moving away from the ‘tick box’ culture. New coaching academies will also be set up to upskill Jobcentre staff to better support people into work.

Testing and digital design will be carried out to understand how best to bring DWP services online and deliver tailored support.

Peter Cheese, chief executive of the CIPD, said: “These are welcome developments for jobseekers, but the government must also consider how it can improve engagement between Jobcentres and employers as CIPD research finds fewer than one in 10 employers currently see Jobcentre Plus as an effective source for recruiting employees.”

Youth Guarantee

Every 18 to 21-year-old in England will have access to an apprenticeship, quality training and education opportunities or help to find a job under the ‘Youth Guarantee’.

Eight youth “trailblazer” areas will be set up with £45 million in funding to identify those most at risk of falling out of education or employment and match them to opportunities for education, training or work.

Cheese said: “The Youth Guarantee is a positive step for helping young people get the training and support they need to get their working lives started on the right foot, earning as they’re learning. However, we want the government to go a step further and provide a specific Apprenticeship Guarantee for any young person under 24, not just those aged 18-21 as currently planned. And there’s strong support for this with nine in 10 employers surveyed by the CIPD backing the introduction of an Apprenticeship Guarantee for 16 to 24-year-olds.”

“The Youth Guarantee is not sufficient to address the collapse of apprenticeships in recent years. We need a broader ambition from government to make apprenticeships a viable alternative to university for many more young people and improve vocational pathways into employment.”

Growth and Skills Levy

The government will transform the apprenticeship levy in England into a more flexible Growth and Skills Levy by investing £40 million, delivering new foundation and shorter apprenticeships in key sectors.

An independent review will be launched to consider what more can be done to enable employers to increase the recruitment and retention of disabled people and those with health conditions and undertake early intervention for sickness absence and increase returns to work.

The review will run until next summer and involve wide-ranging engagement with employers, employees, trade unions, health experts, disabled people and those with health conditions.

Stephen Evans, chief executive of Learning and Work Institute said: “The government’s ambition for an 80% employment rate is the right one and our research shows it will benefit people, employers and the economy. More than three million people who are out of work want a job, but too often don’t get the right support.

“This White Paper starts us on the path to change that. I’m particularly pleased to see the Youth Guarantee, which we have long called for. There can be few bigger priorities than ensuring young people get the education and careers they need.”

Cheese added: “Get Britain Working is a step in the right direction to tackle the UK’s stubborn challenge of economic inactivity. Piloting joined-up support services in some of the worst affected areas will provide some invaluable learnings that can then be applied more broadly, while helping people into work.”

William Roberts, chief executive of the Royal Society for Public Health, said: “It is encouraging to see the government’s new white paper explicitly recognise the role of employers in promoting better health outcomes for their workers – something that aligns with what businesses have told us.

“Everyone employed in the UK should have the right to a healthy workplace. We hope the announced independent review into the role of UK employers in promoting health will recommend an ambitious level of minimum support for all employees. This is especially important as our research shows that 10 million people currently lack access to any workplace health support.”

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