The coalition's work programme is failing the unemployed

While long-term unemployment has soared, referrals to the Work Programme have halved.

Whatever explains the recent fall in unemployment, one thing became clear yesterday. It’s nothing to do with the government. New figures on the Department for Work and Pensions' troubled Work Programme revealed that JobCentre Plus is losing all confidence in the scheme as referrals to the programme have fallen off a cliff.

In July last year, nearly 100,000 people were referred on to the Work Programme: that has since halved to 49,000 in July this year. Long-term unemployment has increased by 188,000 over the same period – so if anything, more people should be being referred on to the Work Programme in each successive month. The government’s flagship back to work scheme is now in total gridlock – just when we need it the most.  Even by the DWP’s own standards, the over 25s and disabled people are being failed – referrals are well below the DWP’s most recent projections.

Disabled people’s right to work is now being systematically destroyed by the Coalition. The Work Programme’s failure is starkest for disabled people seeking work. On average, about 5,600 people claiming Employment and Support Allowance were referred on to the Work Programme. That is less than half of the DWP’s projection of 13,000 a month. After shutting 36 Remploy factories and putting over 1,000 workers out of their jobs, the government has managed to get the grand total of just 36 back into work. Disgraceful.

A hint of good news here or there, while welcome, cannot and should not disguise the bald truth that the jobs figures show a deeply divided country. Unemployment is higher than it was at the time of the election in nine out of twelve regions in the UK. Those out of jobs are increasingly shut out: a third of the total employed have been unemployed for more than a year. And those in jobs are increasingly insecure: our appalling economic situation means that employers just aren’t in a position to offer secure jobs. Just under half of the increase in employment since the election is due to an increase in part-time jobs. 1.4m people are now forced to work part-time because there are no full-time jobs available.

This tragedy has three big long term consequences for the country. First, thousands of our young people may be consigned to careers that are haphazard and poorly paid for years. As the ACEVO Commission on youth unemployment pointed out, long-term youth unemployment scars for life – through lower earnings, higher unemployment, and ill health. The Commission calculated that these scarring effects will cost the exchequer £2.9bn per year; and the economy will lose a further £6.3bn per year through lost output.

Second, Britain's productivity figures are now in awful shape. According to House of Commons Library calculations, productivity fell by 0.2 per cent in 2011 in the UK compared with the previous year, while it increased by 1.7 per cent in Germany, and 1.2 per cent in the US.  We are employing more people to produce less. If this becomes a permanent feature of the economy, it will hobble us for years by damaging our long-term growth and our export prospects.

Third, the coalition's jobs failure is making it much harder to hit the debt targets. The coalition has now trapped us in a vicious circle where their failure to create jobs and growth has led to rising welfare bills and a fall in tax revenues. The deficit is up by more than a quarter compared to the same period last year and the welfare bill has soared by a staggering £9bn. Without jobs and growth you can't get the deficit down.

Once upon a time David Cameron promised us the biggest back-to-work programme the country had ever seen. That's yet another promise that's turned to ash. And we'll be paying the price of the coalition's jobs failure for years to come.

Work and Pensions Secretary Iain Duncan Smith. Photograph: Getty Images.

Liam Byrne is Labour MP for Birmingham Hodge Hill, and sits on the International Trade select committee. He is the cofounder of the UK-China Young Leaders Roundtable and author of Turning to Face the East: How Britain Prospers in the Asian Century.

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Our union backed Brexit, but that doesn't mean scrapping freedom of movement

We can only improve the lives of our members, like those planning stike action at McDonalds, through solidarity.

The campaign to defend and extend free movement – highlighted by the launch of the Labour Campaign for Free Movement this month – is being seen in some circles as a back door strategy to re-run the EU referendum. If that was truly the case, then I don't think Unions like mine (the BFAWU) would be involved, especially as we campaigned to leave the EU ourselves.

In stark contrast to the rhetoric used by many sections of the Leave campaign, our argument wasn’t driven by fear and paranoia about migrant workers. A good number of the BFAWU’s membership is made up of workers not just from the EU, but from all corners of the world. They make a positive contribution to the industry that we represent. These people make a far larger and important contribution to our society and our communities than the wealthy Brexiteers, who sought to do nothing other than de-humanise them, cheered along by a rabid, right-wing press. 

Those who are calling for end to freedom of movement fail to realise that it’s people, rather than land and borders that makes the world we live in. Division works only in the interest of those that want to hold power, control, influence and wealth. Unfortunately, despite a rich history in terms of where division leads us, a good chunk of the UK population still falls for it. We believe that those who live and work here or in other countries should have their skills recognised and enjoy the same rights as those born in that country, including the democratic right to vote. 

Workers born outside of the UK contribute more than £328 million to the UK economy every day. Our NHS depends on their labour in order to keep it running; the leisure and hospitality industries depend on them in order to function; the food industry (including farming to a degree) is often propped up by their work.

The real architects of our misery and hardship reside in Westminster. It is they who introduced legislation designed to allow bosses to act with impunity and pay poverty wages. The only way we can really improve our lives is not as some would have you believe, by blaming other poor workers from other countries, it is through standing together in solidarity. By organising and combining that we become stronger as our fabulous members are showing through their decision to ballot for strike action in McDonalds.

Our members in McDonalds are both born in the UK and outside the UK, and where the bosses have separated groups of workers by pitting certain nationalities against each other, the workers organised have stood together and fought to win change for all, even organising themed social events to welcome each other in the face of the bosses ‘attempts to create divisions in the workplace.

Our union has held the long term view that we should have a planned economy with an ability to own and control the means of production. Our members saw the EU as a gravy train, working in the interests of wealthy elites and industrial scale tax avoidance. They felt that leaving the EU would give the UK the best opportunity to renationalise our key industries and begin a programme of manufacturing on a scale that would allow us to be self-sufficient and independent while enjoying solid trading relationships with other countries. Obviously, a key component in terms of facilitating this is continued freedom of movement.

Many of our members come from communities that voted to leave the EU. They are a reflection of real life that the movers and shakers in both the Leave and Remain campaigns took for granted. We weren’t surprised by the outcome of the EU referendum; after decades of politicians heaping blame on the EU for everything from the shape of fruit to personal hardship, what else could we possibly expect? However, we cannot allow migrant labour to remain as a political football to give succour to the prejudices of the uninformed. Given the same rights and freedoms as UK citizens, foreign workers have the ability to ensure that the UK actually makes a success of Brexit, one that benefits the many, rather than the few.

Ian Hodon is President of the Bakers and Allied Food Workers Union and founding signatory of the Labour Campaign for Free Movement.