DWP to overhaul Jobcentres as part of 'biggest reforms in a generation' - full breakdown of changes

These reforms, to be unveiled next week in the "Get Britain Working" White Paper, aim to shift Jobcentres away from their traditional role as benefits administrators. Instead, they will become a modernised employment service offering career guidance and support to all members of the public.

The overhaul represents a significant departure from the current one-size-fits-all approach, with plans to create a more personalised and digitally-focused service. The current system faces significant challenges, with only 45 per cent of people trusting the DWP to help them reach their full career potential.

Employer engagement with Jobcentres remains particularly low. Among employers who recruited or attempted to recruit in 2022, just 14 per cent utilised Jobcentre Plus services.

Only 15 per cent of employers were even aware of Jobcentre Plus or DWP Work Trial programmes. The UK stands alone among G7 nations with higher economic inactivity levels than before the pandemic.

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Nearly 2.8 million people are currently out of work due to long-term sickness. An additional 1.5 million people are unemployed, while almost one million young people are neither in employment nor education.

The Get Britain Working White Paper will also introduce a £55million investment to modernise Jobcentre services.

The funding will support testing and digital design into next year, focusing on making DWP services more accessible online. Work coaches will be equipped with AI tools to help them find relevant information for their clients more efficiently.

The new system will emphasise that those capable of working should do so, with clear consequences for those who don't properly engage. A key aim is to transform Jobcentres into the primary recruitment hub for employers, matching job opportunities with suitable candidates.

Work and Pensions Secretary, Liz Kendall, emphasised the scale of the reforms.

She said: "Thousands of employers are desperate to recruit, and millions of people are desperate to earn money and get on in their jobs but both sides are being failed by a system that is not fit for purpose."

"That is why we will bring forward the biggest reforms to employment support in a generation. This includes overhauling our jobcentres into a genuine public employment service, open to everyone who wants to use it and is the go-to recruitment centre for businesses," she added.

Support for the changes has come from the private sector, including from Darren Burns, the head of the Timpson Foundation.

He explained: "At Timpson, we support the plan to get more people back into work by helping them to find exciting and rewarding careers. Many of our existing colleagues have come to us through the Jobcentre and this is still the case today."

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"We regularly work in close partnership with local Jobcentres to find amazing colleagues for our business and the support we receive is invaluable."

The reforms will also introduce a new Youth Guarantee to ensure all 18-21-year-olds in England are either earning or learning. Local areas will receive additional powers to coordinate work, health and skills plans, aiming to deliver opportunities across all regions.

Furthermore, the Government is accelerating its welfare system modernisation, with plans to move 800,000 people from Employment and Support Allowance (ESA) onto Universal Credit this autumn. This transfer, originally scheduled for 2028, will bring more people into a modern benefit system.