Labour market strategies and welfare policies: the Conservative record

The chapter critically examines the Labour government’s reforms of welfare and labour market policies. Current initiatives involve merging of the employment support and skills provision, as part of a revamped and strengthened devolution deal, operating within the framework of the Labour Party’s back to work plan. Jobcentre Plus and the National Careers Service are to be merged to get more people into work and to support those seeking better opportunities with the means to find better paid work. The Labour government discourse marks a shift away from work first (any job) that had been a crucial element of the Conservative government’s stance on economic inactivity and joblessness. Whether this supportive rhetoric can be matched by operations on the ground in extremely unequal and distressed labour markets is the key question that the authors seek to address, given the Government proclaimed commitment to austerity and tight fiscal rules. The introduction of a Youth Guarantee is a notable change from previous Conservative government’s policies; the emphasis on skills development is not entirely new, however, as devolution of employment and skills was initiated largely by the previous Conservative government. The reform of the two-child tax credit is promised as part of a review of poverty; there is a commitment to end dependence on food banks which implies a possible raising of benefits (as called for by welfare rights organisations) as part of raising the safety net. The chapter also explores the promised reform of disability benefits and the Work Capabilty Assessments. Labour has stated that reforms need to be aligned with NHS and local health policies which are essential for addressing long term health conditions. In sum, the chapter assesses the extent to which the Labour government’ ALMPs mark a significant shift with previous Conservative government policies and identifies key challenges for effective implementation.