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Labour’s Plans for Jobcentres Aim to Boost Employment Rates
Employment minister outlines vision for transforming jobcentres and tackling post-pandemic challenges
Ed Beardsall
December 2, 2024
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The UK government has unveiled plans to overhaul the jobcentre network, with a goal of improving employment rates and modernising services for jobseekers. Speaking at a careers fair in a bustling jobcentre in Hoxton, East London, Employment Minister Alison McGovern described jobcentres as “intensely hopeful places,” despite their reputation as bureaucratic hubs for managing benefits claims.

Transforming Jobcentres into a Public Employment Service

The government’s white paper, Get Britain Working, sets out proposals to transform the UK’s 650 jobcentres into a “genuine public employment service.” A £55m investment over the next year will fund the planned changes, which aim to reduce bureaucracy, update outdated IT systems, and enable job coaches to dedicate more time to personalised support.

McGovern emphasised the importance of freeing up time for job coaches to focus on building relationships with claimants. “The problem is, by and large, not work coaches,” she said. “The problem is time. If you are spending your time dealing with old technology and inadequate systems that are laborious, the person in front of you is just sat there.”

Tackling the Decline in Employment

The UK’s employment rate currently sits just under 75%, with the government targeting an increase to 80%. Achieving this ambitious goal will require bringing up to two million people back into work, addressing challenges such as post-pandemic health issues and regional disparities in job opportunities.

McGovern pointed to concerning statistics in the white paper, including the fact that less than 8% of universal credit claimants actively searching for work secure employment each month. “The ‘into work rate’ is poor and falling,” she noted, highlighting the need for systemic change.

Job Coaches on the Front Line

At the careers fair, job coaches shared insights into the challenges and successes they encounter while helping claimants return to work. Shohel Ahmed, a work coach, said motivation is key: “It’s about me, building that relationship with you, building that rapport.” He explained how language barriers often hinder claimants’ progress and discussed directing individuals toward language classes and confidence-building exercises.

Other coaches noted the specific needs of certain groups. Cansu Orhan, who works with 18 to 24-year-olds, said many young people face mental health challenges and prefer remote work. Meanwhile, Oladele Woye, who supports young people at risk of serious violence, highlighted the need for more employers willing to hire ex-offenders.

A Digital Future for Jobcentres

To streamline services for jobseekers, McGovern proposed introducing digital tools that could offer a faster, more efficient way to match straightforward cases with available jobs. “We need people to have a jobcentre in their pocket, if that’s what’s best for them,” she explained, adding that this would allow more time for job coaches to focus on individuals requiring intensive support.

Regional Approaches to Employment

Recognising the varied challenges across the UK, the Department for Work and Pensions (DWP) has published detailed regional job market analyses. McGovern stressed the importance of tailoring jobcentre services to local needs. “Devolution is really important for its own sake, and also because our labour markets are just like a postcode lottery. Your chances and opportunities are so heavily dictated by where you happen to be,” she said.

A Vision for Change

The proposed transformation of jobcentres reflects Labour’s commitment to tackling unemployment and addressing systemic issues within the UK’s labour market. With plans to modernise services and better equip job coaches, the government aims to create a more effective public employment service that helps more people secure meaningful work.

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