Our landmark Pathways to Work Commission report has been published setting out the need for a major shake-up of the benefits system and how government, councils, employers and other agencies work together to help more people back into work.
The Pathways to Work Commission has carried out the nation’s biggest deep dive into ‘economic inactivity’, which refers to the growing number of people who are out of work and not seeking a job now.
The commission's wide-ranging research shows far more people in Barnsley and South Yorkshire want to be in work than existing government data suggests. It suggests seven in ten people who are currently economically inactive would like to take a job that is aligned to their skills, interests and circumstances.
The unemployment rate in Barnsley is lower than the national average at 2.9%. These are the people actively looking for work. Economic inactivity is different and is a national challenge. It includes those who are currently out of the labour market due to disability, poor health, or caring responsibilities, as well as early retirees, students, and those whose illness or disability means they simply cannot work.
The Commission has been set up by Barnsley Council working closely with the South Yorkshire Mayoral Combined Authority to explore in detail how to tackle the barriers preventing this group from joining the labour market. The panel of global experts is led by Rt Hon Alan Milburn, former Cabinet Minister and social mobility champion.
The commission took evidence from employers, educators and experts and carried out interviews with 750 South Yorkshire residents affected by economic inactivity.
Among wide-ranging recommendations is a pilot programme which would support 2,200 people into work over a four-year period. This would require investment of £10m, but would in turn generate almost £70m in economic benefits, including a £28m reduction in benefits payments.
The Commission suggests this model could be used to support 10,000 people to return to work across South Yorkshire.
Nationally, raising the labour market participation rate from 78 to 80 per cent would give an economic boost of £23 billion a year.
Cllr Sir Steve Houghton CBE, Leader of Barnsley Council, said: “I’d like to thank Alan Milburn for this incredibly detailed report which I firmly believe is of national and historic importance.
“There is no ‘one size fits all’ solution and understanding the variety of barriers with a far more personalised approach is key to tackling the problem.
“As well as supporting individuals we need to support businesses to change. Many of the people we have met have complex needs and challenges. If they are to work, the ways they are recruited and employed will have to change and be flexible. That is not easy for businesses, and we will have to help them.
“We also need to ensure those currently in work don’t fall into inactivity if their health becomes an issue, and close work with health partners is a vital part of this work.
“Crucially we need to work more closely with schools and communities to get our young people more work ready – to reduce the flows into inactivity as soon as possible. This is particularly true for our most deprived communities.
“We call Barnsley the Place of Possibilities where people live healthy and productive lives in a robust and sustainable inclusive economy. Pathways to Work and opening up our labour market to those currently excluded from it is vital to achieving that, and I believe there is nothing better we can do than this.”
Sarah Norman, Chief Executive of Barnsley Council, said: “Our borough is a place that fosters and grows ambition, enabling everyone to be the best they can be. The Pathways to Work Commission Report shows us how we can do even more to make sure people at every stage of life can realise their ambitions and develop their career.
“We’re already working closely with partners across the region, including the Mayor of South Yorkshire Oliver Coppard, and with national government and other partners to build on the findings of this report and deliver life-changing pathways into work for residents in Barnsley, South Yorkshire and hopefully across the country.”
South Yorkshire’s Mayor, Oliver Coppard, said: “For too long, the health, skills and transport barriers that scar our region have prevented people here from making the most of their talents. The findings of the Pathways to Work Commission will help us to break down those barriers and unlock the talent and potential of our communities.
“I am grateful to all the commissioners, businesses, organisations and individuals who supported the Pathways to Work Commission. This work is both recognition of our ambition and our success to date, but more importantly, will genuinely help transform the lives of people across South Yorkshire.
“Building better pathways into work is an essential part of my Plan for Good Growth. I’m determined to transform South Yorkshire into a thriving economy that will enable all our people to stay near and go far.”
For more information see barnsley.gov.uk/PathwaysToWork
