Understanding benefits

Download

5.5 million people are in receipt of out-of-work benefits, the majority because they are disabled or have a long-term health condition. One in five economically inactive people, including 600,000 disabled people, want to work. But only one-in-ten out-of-work older and disabled people get help to find work each year. New research by Learning and Work Institute (L&W) has found that people who are unemployed are ten times more likely to be in work 6 months later than economically inactive people. Only 1% of people economically inactive due to long-term sickness are in work six months later.

Many economically inactive people don’t want to, don’t need to or can’t work, but one in five say they would like a job, some 1.7 million people. The Government’s new Universal Support programme is welcome but will only help an extra 1% of out-of-work disabled people annually, adding up to one percentage point to the employment rate of disabled people (the current gap with non-disabled people is 29 percentage points): it is a step forward, not a step change.

The UK’s employment rate is relatively high, but an 80% employment rate, an extra 1.2 million people in work, is achievable. Achieving this will require: extending employment support to more people; working with employers on recruitment and job design; and investing in social infrastructure like health, skills and childcare.

Sanctions are a sign of failure to engage people and should be an absolute last resort. We need to focus more on engagement than compliance.

Where next for employment support?

Catch up on our half-day, online Employment and Skills Summit.
E&S Summit 2023 Graphic (3)

Discover our work on employment and social security