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Key elements that have contributed to the success so far… Macroeconomic Stability Flexibility and Diversity Making work pay: National Minimum Wage and tax credits improve incentives to work for low income households Active Labour Market Policies: - Jobcentre Plus: Rights Responsibility agenda, Assisted job search, continuous labour market attachment - New Deals: reduce long term unemployment, Gateway to training/retraining Future Challenges: Can the UK do more…? The key problem is now economic inactivity not unemployment… …and because the vast majority of claimants of inactive benefits are economically inactive, most are not looking for work… …And other countries face similar problems… What are we doing about it…? The UK Government’s long-term aim is to achieve an employment rate equivalent to 80 percent of the working age population Including a million less on incapacity benefits, a million more older people in work, 300,000 more lone parents in work Which means tackling inactivity and worklessness, particularly in the most deprived areas We have begun to make a difference amongst lone parents and those on Incapacity Benefit… Reform Incapacity Benefit, for sick and disabled: - Set up of Pathways to work (PTW) - PTW includes mandatory WFIs 2) Increase incentives for Lone Parents to enter or re-enter the labour market: - New deals extended to lone parents - Tax Credits 3) Extending working lives: - age discrimination legislation - Increase in State Pension Age - Age positive campaign * The UK has had a mixed past when it comes to employment rate success, with major lows in the early 80’s and 90’s due to recession. However, the employment rate in the UK is currently at an historic high. Our employment rate is 74.5%, this means that almost three quarters of our working age population is in employment- this corresponds to almost 28 million people in work. As you can see from the chart, the proportion of
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