British job centers are not fit for purpose, says Liz Kendall ahead of major reforms

The UK’s network of employment centers has become a hollowed-out ‘benefits administration service’ shunned by employers and job seekers alike. employment.

In an interview with the ObserverLiz Kendall, the Work and Pensions Secretary, warned that the country’s 650 job centers are no longer “fit for purpose” and should become hubs for people looking for work or a better position, as well as for people dependent are receiving benefits. Reforms to integrate the network of employment centers with health and careers services in England will be unveiled this week, as part of a long-awaited plan to tackle economic inactivity.

“Employers are desperate for workers,” she says. “People are desperate for money and want to keep their jobs. So we need big change. We need to see a change in our employment centers from a one-size-fits-all benefits administration to a true public employment service. It is not fit for purpose and it needs to change.

“If only one in six employers uses an employment agency to recruit staff, that is a major problem. We need to change the way we work to ensure employers want to use us and that people looking for jobs have the skills employers need.”

A serious image problem has led to hundreds of job centers being neglected by the vast majority of employers and shunned by those looking for work or a better job, a new government-backed analysis has found. It suggests that only a third of the public would use them for job information.

The reforms will also ensure that young people are required to attend education or work or face benefits sanctions. They come as the number of 16 to 24 year olds who do not fall into either category is at its highest level in a decade and towards the 1 million mark. Any increase in the use of benefit sanctions will prove controversial within Labor, but Kendall said the government’s efforts to improve access to medical services, career advice and training had to be matched by a willingness to take on the positions on offer .

“We will transform opportunities for young people, including through early intervention to deal with mental health issues, with support in schools, with new work experience and career advice,” she said, promising to offer “new opportunities” to young adults. . “But the young people will have to take that on themselves. Being out of work at a young age and not having the basic skills can have lifelong consequences for your income, your career and your health. We do not accept that; we don’t write off young people. We will transform those opportunities, but young people will have the responsibility to seize them.”

The number of Neets – young people not in employment, education or training – now stands at 946,000, according to the latest data for July to September released last week. It was up from 872,000 three months earlier and remains 20% higher than before the pandemic.

A government-conducted study seen by the Observer reveals the image problem facing employment agencies, with less than a third (32%) of respondents saying they would use one for employment information.

Only around half (53%) trust the Department for Work and Pensions to provide an effective service to employers. A third of people using the department’s services believe that insufficient support is provided to the unemployed.

The research comes ahead of the Get Britain Working white paper, which is being unveiled by Kendall this week. It marks part of the government’s efforts to reduce the record 2.8 million people out of work due to long-term illness, leading to rising social costs and damaging Keir Starmer’s hopes of securing economic growth .

The cost of disability benefits has risen from £17 billion before the pandemic to an estimated £29 billion this year. This figure is expected to reach £34 billion at the next election.

“We know that employment conditions can indeed encourage or discourage work, but it is also about skills. It’s about childcare. It’s about the balance between work and family life. It’s a whole bunch of problems. We need to bring all that help and advice together in one place… (Jobcentre) work coaches who have been working for 25 to 30 years, they know what needs to change and we are committed to supporting them.”

While Kendall described the necessary transformation as “one of the biggest public service reforms this government is undertaking”, the bid to transform employment centers into a new national jobs and careers service is being supported by a modest investment of £55 million.

However, Kendall said her job was directly linked to the government’s decision to prioritize the NHS in last month’s fiscal budget.

“A healthy nation and a healthy economy are two sides of the same coin,” she said. “If you have a map of the country showing the areas of high economic inactivity, unemployment or high poverty – my maps are exactly the same as (Health Minister) Wes Streeting’s for poor health and low life expectancy.”