‘How Labour could fix Britain’s punitive, ineffective Jobcentre system’

Jobcentres could be, and should be, a place people turn to for support. They should be a ‘labour exchange’ where people seeking work and employers providing work can come together. They should provide the advice and referrals people need, to move into a good quality job, to access training or health services or to have a decent income if they are unable to work. It’s fair to say that our Jobcentres fall a long way short of this ideal. 

Labour has already made some proposals. Gordon Brown’s commission on the UK’s future and Labour’s shadow employment minister Alison McGovern have proposed devolving employment support. Could a new Labour government help realise Jobcentres’ potential?

Earlier this week, we published the final report for the Fabian Society’s commission on poverty and regional inequality. We set out to unite all of England’s regions around a shared policy agenda to improve living standards, by creating jobs in all regions, breaking down barriers to work and tackling local living costs. 

We spoke to people who had used Jobcentres. Their experience was often poor, and surveys find that these services aren’t what they should be. Work coaches often try to do a good job in difficult circumstances. But many people who use Jobcentres are deeply unhappy with them, quite understandably. We think there is a better way.

The ‘work first’ approach is highly punitive – and also ineffective

First, we must tackle how sanctions interact with a so-called ‘work first’ approach. ‘Work first’ means coaches prioritise moving people into work as quickly as possible. There is some sense to this, of course. But it doesn’t make sense for people to take just any job. And it is underpinned by a threat to strip people of their benefits if they don’t take that job. This is highly punitive, and often cruel.

But it is also ineffective. For many people, the first job available isn’t the right option. It might be better for them to keep trying for other jobs that are more competitive or to spend a bit of time preparing for a job they are better suited to. Some might need to retrain. But instead, ‘work first’ often means people are forced to take jobs that aren’t appropriate, and they end up cycling in and out of low-paid work with no long-term prospects. 

It is truly a miserable situation for those trapped in this cycle. But it also makes little sense to the rest of society to see people’s talents and energy go to waste when they could have a career they enjoy and contribute in the way they want to.

More expensive schemes often save money in the long term

That’s why we need to move away from ‘work first’ and place greater value on some of the interventions that may cost more up front but which save down the line. People should not be forced to take jobs under threat of sanction, regardless of the long-term consequences. People should also be able to access useful training courses while receiving benefits.

Others could be trapped in that painful ‘catch-22’ of needing to have recent work experience in order to get a job. When Labour was last in government, the Future Jobs Fund transformed lives. In the wake of the global financial crisis, it created new, meaningful, six-month job placements. It was a major success, and councils have tried to keep similar schemes going. Even the Conservatives’ Kickstart programme revived the concept after the pandemic. 

These programmes cost more, but they also save more. They tend to have better long-term outcomes, which means a lower benefits bill and higher tax take. They should be part of the offer to people who are unemployed more often, especially people who are long-term unemployed or who cycle in and out of poor-quality work.

Councils should take over control of Jobcentres

But second, we should put councils in charge of Jobcentres, while keeping social security payments centralised. The case for devolving employment support has been made many times over. Councils are likely to be better than DWP in making sure people get the support they need from local services and other organisations. And they have a much better understanding of the local economy and relationships with the employers expanding or moving in. In parts of the country, they already do some of this good work anyway. It’s just too small scale. 

In the first term of a Labour government, councils and combined authorities should take on commissioning or co-commissioning schemes like the work and health programme and new job placement schemes. But by 2035, more of the services Jobcentres offer, and the Jobcentres themselves, could come under the control of councils. Clearly, there would need to be robust national policies, regulations, oversight and safeguards. But these aren’t major obstacles.

Many of us have had some experience of a Jobcentre in our lives. For too many of us, it will have been scarring. We will hope to never see the inside of a Jobcentre ever again. We should want better for those who have to do so. Let’s hope the next Labour government finds a way.