A government-endorsed local authority report is calling for a new national strategy to boost labour market participation.
According to the new report from Barnsley Council’s ‘Pathways to Work’ commission a shift is needed “from welfare-to-work to a new focus on supporting people to move from economic inactivity to activity.”
The initiative has been endorsed by the government and the report has been welcomed by Grid as an essential first step for workplaces to help people return to work.
The Pathways to Work commission was launched to address the high rate of economic inactivity among Barnsley residents due to ill health, disabilities, caring responsibilities, and low qualifications.
Barnsley Council aims to improve work opportunities, with 42,300 economically inactive residents, 70 per cent of whom would take suitable jobs.
The report also calls for restructuring DWP, streamlining funding, and decentralising support for local governments. It suggests upgrading Jobcentre Plus, raising the National Living Wage, expanding occupational health services, better-integrating health and work support and investing in education.
Grid spokesperson Katharine Moxham says: “Grid agrees that a key challenge to UK growth continues to be the one in five working-age people who are out of work but not seeking a job, often for reasons of ill health. It’s encouraging to hear the report findings that seven out of ten economically inactive people want to work. The group risk industry, which an increasing number of employers are utilising, according to Swiss Re’s 2024 Group Watch, is ideally placed to help with this challenge by stemming the flow of workers into inactivity because of ill-health.
“There are calls for employers to play their part in helping to reduce the number of people who are economically inactive and those with group income protection will be well-placed to do this. Group income protection providers can help deliver that outcome for employers and employees alike, whilst saving the state considerable effort and cost by mitigating the number of people whose health presents a barrier to work becoming economically inactive, by getting them back to work and financially supporting those who genuinely can’t go back or who need longer to do so.
“Group risk benefits provide a comprehensive range of embedded services aimed at improving the health and wellbeing of employees, underpinned by highly effective Vocational Rehabilitation, helping people who are absent from work due to ill-health make a sustainable return to work. All of this is provided alongside a group income protection policy, which provides financial support whilst an employee is unable to work for health reasons.”