As the country moves out of the pandemic, the government has launched an initiative called the Way to Work, to help businesses and the economy recover from its effects. The government has a target to move half a million people into jobs by the end of June, by leveraging changes to the Job Seekers Allowance Scheme.
The government intends to get people off Universal Credit and into work. Currently Job Seekers Allowance provides claimants with up to three months to find a job, in their chosen sector, before facing sanctions. Sanctions could be instigated after four weeks, under the new rules.
Benefit payments can be reduced if job seekers fail to make realistic efforts to get a job or turn down employment. In this BBC article; Universal Credit: Jobseekers told to widen job search faster or face cut, the new rules are described as a ‘callous move.’
Under-utilised Kickstart Scheme
The BBC also reported that the £2bn Kickstart Scheme, launched in 2020, has helped more 100,000 young people start new roles. However, funding is available for up to 250,000 jobs, creating an appeal from Ministers for employers to come forward with job offers under the scheme.
Government Motives
The government hopes to fill open job vacancies, which are currently at an all time high with 1.2 million vacancies. The figure is almost 60% higher than pre-COVID levels. The government will provide extra support with more face-to-face time with a Work Coach available. The government highlights that individuals are typically £6,000 per year better off in full time work, than on benefits.
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Rishi Sunak, Chancellor of the Exchequer, said “It’s important that everyone has the opportunity and support to find a good job to help them get on in life. That’s why we’re doubling down on our Plan for Jobs with this new campaign to harness the talent of jobseekers and support employers to fill vacancies, find work and create new opportunities.” He continued to say, “Together we will boost this country’s jobs-led recovery.”
