19 Accepted

DWP attributes declining into-work rate to external factors, but its scope is limited.

Conclusion
We asked the Department how concerned it was about the drop in the into-work rate nationally in the last two years and what the reasons are for the decrease. The Department told us it was concerned but that there are external factors that impact the into-work rate, including job vacancy numbers, which it said correlated with the increase in the into-work rate 36 C&AG’s Report, para 1.11 37 C&AG’s Report, para 14 38 C&AG’s Report, para 15 39 C&AG’s Report, para 16 14 after the COVID-19 pandemic.40 It also explained that it is seeing a more complex caseload which will impact the into-work rate, such as claimants with health conditions and disabilities.41 The committee notes though that the into-work rate relates only to claimants in the intensive work search category, it excludes claimants with no work-related requirements, including due to health conditions and disability.42
Government Response Summary
The government highlights its existing Get Britain Working White Paper and Pathways to Work initiatives, backed by significant funding, to support employment for people with health conditions and disabilities. The department will publish annual progress updates against intermediate employment metrics from Autumn 2025.
Government Response
Accepted
HM Government Accepted
6.1 The government agrees with the Committee’s recommendation. Recommendation implemented 6.2 Through the Get Britain Working White Paper, the department has already set out a roadmap for how the government’s long-term ambition of achieving an 80% employment rate will be realised. Pathways to Work will contribute to this ambition by supporting disabled people and people with long-term health conditions into, or toward, employment, backed by £1 billion a year of funding by 2030 and a total of £2.2 billion over four years. 6.3 Coordinated cross-government action is key to this long-term ambition. The department’s reforms sit alongside wider government initiatives, including the launch of Skills England to create a shared national plan to boost the nation’s skills, creating more good jobs through the modern Industrial Strategy, strengthening employment rights through the Plan to Make Work Pay and creating a National Health Service fit for the future through the 10 Year Health Plan for England. 6.4 Alongside the headline outcome of an 80% employment rate, the department has published a set of intermediate metrics. The department will publish annual progress updates against these, with the first update in Autumn 2025. The department will know its plan is working when it sees improvements in these metrics, which include:
Addressee Bodies
HM Treasury
Timeline
Recommendation age 1.1 yr
Report published 02 Jul 2025