Autumn Statement: Employment Roundup

• The chancellor of the exchequer, Jeremy Hunt, delivered the government’s Autumn Statement to the House of Commons on Wednesday.  
• The statement contained several measures related to employment, including an extension of the Restart Scheme and expansion of Individual Placement and Support.
• Comments from Managing Director of GC Employment, Michelle Leeson.

The chancellor of the exchequer, Jeremy Hunt, delivered the government’s Autumn Statement to the House of Commons on Wednesday.

Mr. Hunt updated the gathered members of parliament on the Office for Budget Responsibility’s (OBR) latest forecasts for the British economy. He reported that GDP growth was stronger than previously expected this year, but had been revised down for 2024, 2025, and 2026. He also stated that inflation was expected to fall to the Bank of England’s target of 2 percent in 2025.

In addition, Mr. Hunt outlined the government’s short and long-term fiscal policies, including taxation and spending plans. While the decision to cut employee national insurance from 12 to 10 percent grabbed the headlines, he also announced several measures designed to expand the workforce by encouraging economically inactive people to enter or return to the labour market.

Back to Work Plan

The government confirmed further support for the £2.5 billion Back to Work Plan, which aims to help those with long-term health conditions, disabilities, and difficulties finding work into – or back into – sustained employment.

Key existing programmes will receive extra funding, with a view to enrolling more jobseekers over the next five years.

The Restart Scheme in England and Wales will be extended for two years until 2026, creating an additional 500,000 spaces for participants. Moreover, an extra 100,000 spaces will be made available on Individual Placement and Support (IPS) programmes.

In parallel, the Work Capability Assessment and fit note systems will be reformed, while mandatory work placements will be introduced for “those who have not found a job after 18 months of intensive support”.

The OBR predicted that these measures, together with increases to the minimum wage, will assist 78,000 people into employment by 2028-29.

Overcoming Barriers

Reacting to the chancellor’s address, Michelle Leeson, Managing Director of GC Employment, said: “Many people across the country want to work but face significant barriers - from long-term health conditions to a lack of affordable childcare.

“To realise the best outcomes – for individuals, families, and communities – it is crucial to correctly identify these barriers, and more importantly, put in place support to help people overcome them.

“We therefore welcome the government's commitment to supporting jobseekers through the Back to Work Plan and look forward to helping more people find meaningful and lasting employment.”

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