Working Futures will help people who experience disadvantage in the labour market and need extra support to find and progress in work. It will be accessible and open for everyone, irrespective of whether they are claiming Universal Credit.
Why is Working Futures needed?
The longer a person is out of work the harder it is to find, compete, and secure a job. It is even harder when people face additional personal barriers in the jobs market, such as caring responsibilities, housing, physical or mental health conditions and groups identified by the DWP. This can result in long-term unemployment or people giving up looking for work altogether and becoming ‘economically inactive’.
Support from jobcentres and the DWP national providers is fragmented and struggles to connect with skills provision and other local services people rely on, resulting in many cycling in and out of work. Furthermore, it largely fails to engage a rising number of people who are out of work but don’t use jobcentres. Local government and other partners seek to address gaps in provision but do so in a vacuum of formal partnership.
Alongside increasing labour market participation, we need to better anticipate our changing economy which will create different demands for the workforce, which means being more responsive for people and communities so no one is left behind.
Working Futures aims to reform employment services for people struggling in the labour market. They may be out of work, in a low paid job or insecure work, or need to increase their skills to get out of in-work poverty. It will use the knowledge, influence, and powers of local government to commission and/or directly deliver a more integrated and personalised service dedicated to turning lives around. Local government would work closely with DWP and jobcentres, health services, skills partners, and others, so Working Futures provides new pathways to sustained employment and improved earnings. To design and manage better integrated services will require a new way of working with a duty to co-operate placed on partners.
Why local government is best placed
Councils can reach out to a broad range of potential Working Future customers through their own services and community venues (family hubs, libraries, children’s centres) and their voluntary and community organisations, social housing, and healthcare partners. To overcome multiple barriers requires the joining-up of different services and for these to be adequately funded. Local government is best placed to plan and co-ordinate the local delivery of employability services so it can be accessed alongside other services.
Working Futures could start by providing a core service offer across the whole of England building on an improved ‘Universal Support’ (US) programme. Announced in March 2023, current plans are for US to be phased in from Autumn 2024 and grant funded to local government to plan and deliver. The DWP confirms it will be voluntary for people to join (they do not need to be claiming Universal Credit) and that it has potential to support 100,000 people per year including disabled people and those with health conditions and/or in a disadvantaged group.
Building on an improved US programme, local government and the DWP could quickly lay the foundation for a wider Working Futures which can progressively encompass more pathways and serve more people.
Some areas in England are already doing more and have been for many years. Their experience will be invaluable to inform the future shape of Working Futures. There should be a clear plan to progressively devolve funding and powers to councils who wish to pilot and trial the systems needed for full devolution.
What Working Futures would include
Working Futures will offer an open door to all those that need help and could benefit. DWP and other local partners will make referrals and local people can choose to join directly. This open door approach is crucial for encouraging economically inactive people to start the journey back to work.
Once started on Working Futures local government will take responsibility for the provision of support and progression into a sustained outcome, but benefits administration will be retained by DWP. A top priority for Working Futures will be tackling the high numbers of people who are out of work and have a health problem and reinforcing the recognised positive impacts of being in work. As a first step every area should establish strong joint dialogue with Integrated Care Partnerships and Boards, with learning from the WorkWell vanguard partnerships for example, through an accelerated programme of partnerships.
The task of joining-up services should mean removing inefficient funding silos. The main budgets supporting employability services are: DWP funds through jobcentres, nationally commissioned contracts (such as Restart), and new work and health programmes and UK Shared Prosperity Funds distributed through local government.
The ambition of Working Futures is to commission and/or directly deliver a more personalised service to people experiencing disadvantage. This will mean local government will need to co-ordinate a wide range of functions and services, such as:
- access to high quality assessment leading to personal plans using a new all age careers service.
- an option to co-locate Jobcentres and local authority premises
- job search, job placement and support for self-employment
- existing national contracts are accountable to Working Futures
- replacing Restart when the current contracts finish
- employer engagement for placements and recruitment
- managed routes into specialist provision, such as for health and disability, ex-offenders, drug, and alcohol rehabilitation, etc.
- access to new and better qualifications, including relevant job-ready training · help to resolve problems such as housing, childcare, financial advice, etc
- in-work support, when appropriate, to promote sustained employment.
The whole service needs to be driven by much broader aims rather than just ‘any job’ and ‘off benefits’. Instead, more emphasis needs to be placed on good and better work for each individual and aiding progression in skills, work, and careers.
What Working Futures includes will initially vary to reflect the different starting points of areas. We want to ensure every area can provide a ‘core service’ but no area is held back in developing innovative local solutions. For example, some areas could pilot:
- a single Working Futures Fund such as budgets from DWP (e.g. Flexible Support Fund), DHLUC, DfE and integrating ICB funds, and a Local Working Futures Agreement to test how funds can be integrated. In partnership with DWP, the pilots would test the aims, funding and flexibilities needed, and learn from existing single funding settlements where they exist. The learning would also feed into the proposed Local Employment & Skills Agreements which would govern a single system within a national framework.
- taking responsibility for claimants who are subject to work search requirements
- provision for people who are very long-term unemployed or who leave current DWP provision without a job
- innovative partnerships with health services, building on WorkWell
- how a fully merged jobcentre and local service might work.
To ensure Working Futures is rolled out in a planned way, a strong national/local dialogue is needed. This will mean new structures and joint teams that will oversee the development of the Working Futures approach.
How Working Futures improves lives
Local government wants to address the long-standing barriers that prevent people progressing in their lives and are causing increasing numbers of people to become economically inactive. Working Futures will be designed to provide guarantees of:
- high quality assessment leading to personal plans using a new all age careers service
- support for job search, job placement, and access to training
- access to specialist provision according to individual need
- progression to a positive outcome – a job, better skills, improved health and wellbeing. However, we recognise it will take time to reform a disjointed de-personalised system. It is urgent we make a start to build a new innovative service that can back every individual to succeed.