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.

Getty
Show Hide image

Commons Confidential: Dave's picnic with Dacre

Revenge is a dish best served cold from a wicker hamper.

Sulking David Cameron can’t forgive the Daily Mail editor, Paul Dacre, for his role in his downfall. The unrelenting hostility of the self-appointed voice of Middle England to the Remain cause felt pivotal to the defeat. So, what a glorious coincidence it was that they found themselves picnicking a couple of motors apart before England beat Scotland at Twickenham. My snout recalled Cameron studiously peering in the opposite direction. On Dacre’s face was the smile of an assassin. Revenge is a dish best served cold from a wicker hamper.

The good news is that since Jeremy Corbyn let Theresa May off the Budget hook at Prime Minister’s Questions, most of his MPs no longer hate him. The bad news is that many now openly express their pity. It is whispered that Corbyn’s office made it clear that he didn’t wish to sit next to Tony Blair at the unveiling of the Iraq and Afghanistan war memorial in London. His desire for distance was probably reciprocated, as Comrade Corbyn wanted Brigadier Blair to be charged with war crimes. Fighting old battles is easier than beating the Tories.

Brexit is a ticket to travel. The Independent Parliamentary Standards Authority is lifting its three-trip cap on funded journeys to Europe for MPs. The idea of paying for as many cross-Channel visits as a politician can enjoy reminds me of Denis MacShane. Under the old limits, he ended up in the clink for fiddling accounts to fund his Continental missionary work. If the new rule was applied retrospectively, perhaps the former Labour minister should be entitled to get his seat back and compensation?

The word in Ukip is that Paul Nuttall, OBE VC KG – the ridiculed former Premier League professional footballer and England 1966 World Cup winner – has cold feet after his Stoke mauling about standing in a by-election in Leigh (assuming that Andy Burnham is elected mayor of Greater Manchester in May). The electorate already knows his Walter Mitty act too well.

A senior Labour MP, who demanded anonymity, revealed that she had received a letter after Leicester’s Keith Vaz paid men to entertain him. Vaz had posed as Jim the washing machine man. Why, asked the complainant, wasn’t this second job listed in the register of members’ interests? She’s avoiding writing a reply.

Years ago, this column unearthed and ridiculed the early journalism of George Osborne, who must be the least qualified newspaper editor in history. The cabinet lackey Ben “Selwyn” Gummer’s feeble intervention in the Osborne debate has put him on our radar. We are now watching him and will be reporting back. My snouts are already unearthing interesting information.

Kevin Maguire is the associate editor (politics) of the Daily Mirror

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 23 March 2017 issue of the New Statesman, Trump's permanent revolution