Local support is effective in helping more people into work
Today’s biggest labour market challenge remains bringing down vacancy rates and reducing labour market shortages in a number of sectors while unemployment remains relatively low.
This is why, in the 2023 Spring Budget, the Government announced investment to encourage more working-age people who are economically inactive to return to work. ‘Economically inactive’ is defined as people who are not in employment, have not sought work in the past four weeks, and/or who are unable to start work in the next two weeks.
Currently, the number of economically inactive people in the UK stands at 8.7 million, but it is important to underline that this is not a homogenous group. It includes students, early retirees, those with caring responsibilities, and those with poor physical or mental health.
For those who want to get back to work, but struggle to find the right support or job, it is vital that we get that support right.
Councils and devolved authorities, working with their partners, play a key role in engaging economically inactive and unemployed people through devolved and discretionary employability programmes, but are keen to do more with the right powers and funding.
The LGA commissioned public policy consultancy Shared Intelligence to look at the range of national and local programmes supporting economically inactive people into work, and the opportunities and challenges associated with addressing this issue locally.
The research identified a patchwork of 51 disjointed national programmes, services or initiatives operational in England in 2022/23.
While most of the programmes, to some extent, can support economically inactive people in finding or being ready for work, very few are labelled as addressing this issue.
This changed with the Spring Budget, when new initiatives to join up health and work services for disabled people and people with health conditions were announced, including a new Universal Support programme and Work Well pilots, plus other initiatives to help the over-50s and parents return to work.
When it came to place-based provision, the research identified a range of locally designed initiatives to address economic inactivity.
The research was supplemented by two ‘deep dives’ into work addressing economic inactivity in the North of Tyne Combined Authority and North East Essex (see panel, below).
Each deep dive involved a roundtable discussion with local partners, including local government, health representatives and the voluntary sector.
Interviews with practitioners at local level indicate that working to reduce economic inactivity is a complex task and often takes time.
Individuals who most need support can be difficult to identify, particularly as they may not be in contact with the national benefits system or employment and skills support services.
The underlying causes of economic inactivity are often multifaceted – mixing factors such as family context, and mental and physical health conditions with compounding barriers to do with loss of confidence or self-esteem, or practical factors such as access to transport.
However, when work is done well, the benefit is considerable.
Evidence from the deep dives highlighted how employers welcome recruitment from a broader constituency of potential talent.
Careful wraparound support helps to build clients’ confidence, reducing barriers to entering training and, eventually, the labour market. Further investment and targeted local support is also vital to bring services together.
The report identifies some core ingredients that need to be applied to make a success of work with economically inactive people such as:
- Support must be place-based, with local government well placed to coordinate it.
- Funding should be longer term, simplified and localised.
- Economically inactive people can often experience disadvantage and be isolated.
- Deep-seated causes of an individual’s economic inactivity take time to diagnose.
- Support needs to be mainstream rather than time-limited.
- In-work support is vital, to help people hold down new jobs.
Local knowledge is essential to direct resources to where they are most needed and can have most effect.
Local government is using its local expertise and connections – alongside its roles as democratically elected leaders, trusted convenors, place shapers and leading members of integrated care boards – to bring partners together to address economic inactivity and unemployment.
It does this because it wants to avoid the effect this can have on people’s prospects, household incomes, health and wellbeing, and on local communities and the wider local economy.
The LGA is now working with the Government to ensure any new support for this group is designed in the right way.
Place-based activities
Warwickshire Supported Employment Service, delivered through the county’s skills hub, supports autistic people or people with a learning difficulty to be ready for work. This includes one-to-one support from a guide who works with clients throughout their journey into work.
Link up Leigh Park, funded by the Health Foundation, focuses on 16 to 24-year-olds seeking to overcome barriers to work. It helps young people remain in education, guiding them back into training and work, and helping employers to connect with the community.
Households into Work in Liverpool City Region Combined Authority offers support to people who are struggling to take up paid work. Support includes a ‘household budget’ to pay for goods and services that may help clients overcome some of their obstacles.
What has worked
North of Tyne Combined Authority
A number of local and North of Tyne-wide initiatives have sought to address economic inactivity in the area, including an employability hub, a return-to-work pilot for carers, and a partnership programme to help unemployed social tenants into jobs, education or training.
A key component of activity across the North of Tyne area has been linking employment-related support to other local public service ‘touch points’ with residents.
This wraparound support has been effective in reaching people who, experience shows, may otherwise have been reluctant to approach employment services.
For example, in the return-to-work pilot for carers, the motivation for engagement is that people want support for their caring responsibilities. From there, the programme has been able to work with those for whom caring creates barriers to employment or training.
North East Essex
A number of local initiatives have sought to address socioeconomic factors that link to economic inactivity in North East Essex, covering Tendring District Council and Colchester City Council.
Volunteering has been a very effective bridge from economic inactivity to work in the area.
Not-for-profit CVS Tendring and charity Community360 work to recruit volunteers to work in community assets, such as charity retail shops. The training associated with this naturally moves volunteers closer to being able to contemplate economic activity.
Partners stressed that careful support and mentoring is needed. Both organisations work to buddy vulnerable volunteers with more experienced peers or staff members. They are encouraged to join social events and to take steps towards achievable progression goals.
A similar model is used by the Tendring Mental Health Hub. In a year-long placement, the aim is for volunteers to learn retail and customer service skills, as well as participate in other activities tailored to their interests.
- This is an edited version of ‘Make It Local: local government’s vital role in addressing economic inactivity’, which can be downloaded and read in full at the LGA website.
