As Prime Minister Andy Burnham aims to drive economic growth, experts are calling for significant changes to the Department for Work and Pensions (DWP) benefits system. The new Labour Party leader has promised a "new political model and a new economic model," but with over a million young people not in education, employment, or training and the national benefits bill rising, ministers face pressure to find solutions.
Training provider Strive Training, which helps adults on benefits like Universal Credit and Personal Independence Payment (PIP) gain new skills, is urging the government to rethink its approach to employment support. Managing director Jonny Phillips argues that current systems rely on tick-box exercises that fail those who need help.
Funding for Sustained Employment
Phillips stated: "We would like to see more support for programmes that help people move into sustained work, not just enrol onto training. Funding should reward providers who can show that learners are progressing into real jobs and staying there. The system needs to value the support that makes those outcomes possible, not only the outcome itself."
The issue is particularly acute for claimants of health and disability benefits such as PIP. This benefit covers extra living costs for long-term health conditions or disabilities and is not means tested, meaning employment does not affect entitlement.
Personalised Support for PIP Claimants
Phillips emphasised: "One group that can be overlooked is people receiving disability or health-related benefits, including PIP. Receiving PIP should not be treated as proof that someone cannot work. At the same time, people should not be pushed into unsuitable roles. The right approach is personalised support, realistic job matching and employers who are willing to make reasonable adjustments."
A major government review of PIP is underway, led by DWP Minister Sir Stephen Timms. An interim report concluded the benefit is no longer fit for purpose in its current form and requires major changes.
Targeted Grant Funding
Ministers have increased funding for the Youth Guarantee and the Growth and Skills Levy, alongside grants to help young people into jobs. Phillips called for targeted funding for those who need more than basic CV workshops, including long-term unemployed adults, people over 50, lone parents, those with low confidence, learning needs, limited digital skills, or health conditions and disabilities.
He added: "If the Government wants growth, it cannot only focus on high-level investment and productivity plans. It also needs to focus on the adults who are currently outside the workforce but could contribute with the right support. That is a major opportunity for the economy and for communities."
