Our welfare system discourages progression – investment in upskilling is urgently needed

The government is failing to join up policies – if we’re going to ‘level up’ we need a system that offers retraining and routes for people to access fulfilling jobs, writes David Blunkett

European citizens returning to their home countries will lead to vacancies in key sectors (Getty)

The government’s so-called “levelling-up” political mission is a much-needed one. But it will not come to fruition without focus and designing a joined-up system across all policy areas that deliver it.

It is not simply one-off capital projects and a tiered £4.8bn fund. Getting it right must be about creating fulfilling jobs and routes for people to get into them, especially for those in poor quality or insecure employment and those out of work. Education and welfare policies must come together to do this.

It goes without saying that for many, work has become more precarious as a result of the pandemic. For others, it has brought about dramatic change that requires reskilling and readjustment.

The latest labour market data from the Office for National Statistics shows that while the number of payroll employees has increased for the fifth consecutive month, it remains 772,000 below pre-pandemic levels. With the end of furlough looming there will, no doubt, be more job losses – and returning to business as usual is not good enough either.

There are too many people who are not accessing the training and skills they need to gain sustainable employment. The chancellor has invested in specific programmes through both the Department for Education (DfE) and the Department for Work and Pensions (DWP).

These programmes do not operate in tandem, nor do they sufficiently address training and retraining needs, making it difficult for employers, students, unemployed people and the education system to use them to best effect. This is exacerbated by European citizens returning to their home countries, which paradoxically leads to vacancies in key sectors, but potential employees are ill-equipped to take up these opportunities.

One result of the failure to join up policies across the board is the way in which those in receipt of universal credit are precluded from volunteer opportunities and do not have, even with the investment in personal coaching, clear skills and training plans to provide a pathway back into work.

In fact, the system provides disincentives to progression from temporary, and therefore short-term, opportunities into longer-term prospects that require well thought through investment in upskilling.

For many, and particularly young people, having the opportunity to learn about the world of work, to experience a full-time job, but at the same time gaining careers advice and a link to permanent employment does not exist. It feels pertinent to reflect on what welfare is for. A common view is that it is a safety net. But I see it as a trampoline for empowering people and stimulating opportunity. Work is the best form of welfare and now, more than ever, upskilling and retraining is vital.

We should make it as simple, fair and efficient as possible for unemployed people to learn, upskill and retrain, as the world of work changes at pace. Today the Association of Colleges publishes a new report, Let Them Learn, which sets this out plainly, with recommendations that will enable colleges to support even more people.

Firstly, reforming universal credit rules must be a priority so that no one is prevented from being able to access training that will help them transform their life. Secondly, JobCentre Plus should be recognised as an integral part of the local infrastructure and included as a voice in developing local plans to support people and employers with skills and training. Thirdly, the government has recognised that jobs are a core part of the education and skills strategy – and I hope that this will be properly embedded as the Skills and Post-16 Education Bill progresses through parliament over the coming months.

Finally, what we need is substantial and guaranteed investment over a long period, offering certainty to colleges and providers and a real and tangible lifeline to those willing and able to get onto the ladder of life-long learning.

Instead of clawing back money from colleges unable to deliver full programmes during the pandemic, the government should have a recovery plan properly funded – alongside the limited proposals announced last week by the DfE – to provide, over three years, £1.4bn for pupils in primary and secondary education. Piecemeal announcements with fragmented objectives should be replaced by coherence and commitment to a real transformation in the life chances of individuals and the prosperity of our economy.

Prior to joining the House of Lords, David Blunkett served as home secretary and secretary of work and pensions for Labour in Tony Blair’s government