Britain’s network of job centres has been criticised as outdated and ineffective, serving primarily as a “benefit administration service” rather than a hub for employment and skills development.
Work and Pensions Secretary Liz Kendall has called for sweeping reforms to revitalise the system and tackle economic inactivity.
In an interview with The Observer, Kendall stated that the nation’s 650 job centres are failing both employers and job seekers, with only one in six businesses using them to recruit and a third of the public saying they would seek employment advice there.
She argued for a shift to a modern public employment service that meets the needs of today’s labour market.
“Employers are desperate to recruit. People are desperate to earn money and progress in their careers,” Kendall said. “We need a major transformation. Jobcentres must evolve from a one-size-fits-all benefit service to a public employment service that equips job seekers with the skills employers need. It’s not fit for purpose and it must change.”
The Get Britain Working white paper, to be unveiled this week, outlines plans to integrate job centres with healthcare and career services in England.
This initiative aims to address a growing economic inactivity crisis, exacerbated by record numbers of people out of work due to long-term illness and a surge in young people not in education, employment, or training (Neets).
The latest data reveals that the number of Neets has climbed to 946,000, the highest in a decade and up from 872,000 three months earlier.
Kendall warned of the long-term consequences for young people without basic skills, including reduced earnings, career stagnation, and health issues.
“We will transform opportunities for young people through early intervention, improved mental health support, and expanded careers advice,” Kendall said. “But young people must take responsibility for seizing these opportunities. We will not accept a future where they are left behind.”
The reforms will introduce mandatory participation in education or employment for young people, with potential benefit sanctions for non-compliance.
While this aspect of the plan may spark controversy within Labour, Kendall insisted that reciprocal efforts are essential to make the system work.
The overhaul comes as public confidence in job centres and the Department for Work and Pensions (DWP) remains low.
A government-backed survey found that only 53% of respondents trust the DWP to provide effective services to employers, and a third of users feel insufficient support is offered to those out of work.
The government aims to reduce the 2.8 million people currently out of work due to long-term illness, which has driven up welfare costs and complicated Labour leader Keir Starmer’s plans for economic growth.
Kendall’s reforms are expected to lay the groundwork for a more dynamic labour market, addressing both short-term unemployment and long-term inactivity.
With businesses struggling to fill vacancies and welfare costs soaring, the government hopes this overhaul will revitalise Britain’s workforce and strengthen its economy.
