Work and Pensions Committee

Select Committee statement

We now come to the Select Committee statement on behalf of the Work and Pensions Committee. Debbie Abrahams will speak for up to 10 minutes, during which no interventions may be taken. At the conclusion of her statement, I will call Members to ask questions on the subject of the statement; these should be brief questions, not full speeches. I emphasise that questions should be directed to the Select Committee Chair and not the relevant Government Minister. Front Benchers may take part in the questioning.

I am pleased to present the Work and Pensions Committee’s second report in our employment support for disabled people inquiry series. Our first report, “Disability at Work”, examined workplace issues impacting on disabled people and those with long-term health conditions, who I will now refer to as disabled people. These include challenges finding employment and then staying in work. Today’s report looks at the Government’s Connect to Work programme, an employment support programme that aims to reduce health and disability-related economic inactivity. One of our labour market’s most persistent and challenging issues is the disability employment gap. With nearly one in four of the working-age population being disabled, equivalent to 10.4 million disabled people, it is quite staggering that only 5.5 million disabled people are employed when we know millions more want a job. It is a disability employment rate of 52.8%, compared with 82.5% for non-disabled people—a disability employment gap of nearly 30%. After historical falls, the gap has remained around 30% since 2012, and it remains above the OECD average. Disabled people and people living in disabled households are far more likely to live in poverty than any other group. The extra costs that disabled people face and the lack of employment opportunities are key factors. As most disabilities are acquired, many disabled people have been employed before becoming inactive or unemployed. Their skills and experience are being wasted—a lost opportunity for the individuals, their families, and indeed the country. Last year, the Committee commissioned an economic analysis of the potential savings in Department for Work and Pensions spending and returns to the Exchequer from programmes like Connect to Work, and how such programmes could make that difference. That analysis was modelled on previous successful employment support programmes, and the economists estimated that if 5% of currently unemployed or inactive people—including disabled people—moved into employment, that would generate £20 billion over the life of the Parliament. The Committee’s inquiry on employment support for disabled people showed that there are multiple barriers to work, including features of the workplace itself, issues preventing people from finding and getting into work, and things making it difficult to remain in work. Rather than attempting to cover all those issues in a single report, we felt it would be much more helpful to produce a report on each aspect. We also hope to report on Access to Work once the Government have published their proposals for reforming that scheme, which we hope will be very soon. Our “Disability at Work” report highlighted the structural and cultural factors in workplaces that continue to limit opportunity. We found that barriers facing disabled people in workplaces are present across all stages and aspects of employment, from recruitment to workplace adjustments, employer attitudes and opportunities for progression. The report I present today complements that report by focusing on the support people need before entering work, or when they need help to get there. Our message is clear: closing the disability employment gap requires a joined-up system, not isolated programmes. Let me recognise the significance of Connect to Work, a major, evidence-based programme with real potential. Launched in October 2024, it is intended to support up to 300,000 people—principally disabled people—into sustained paid employment over five years. It is part of the Government’s broader welfare reform strategy to reduce health-related economic inactivity, a strategy that is both economically important and, more importantly, central to improving lives. The Committee is clear that we welcome Connect to Work. The programme is voluntary, grounded in well-established supported employment models, and combines national scale with local flexibility, offering scope for more tailored and responsive support. Models such as individual placement and support, and the supported employment quality framework, demonstrate strong outcomes in sustained employment, as well as in confidence, skills and wellbeing. These approaches are personalised, integrated with services, focused on real jobs and provide ongoing support. Connect to Work adopts these principles, which is one of its greatest strengths. The programme is well designed, but success depends on delivery. A key feature is its devolved delivery model. Local authorities have flexibility to design provision based on local needs, but with that flexibility comes risks—risks to do with, for example, consistency of delivery; workforce capacity; integration with health, skills and local services; funding certainty; and managing the transition between programmes. We heard that different commissioning approaches can lead to variation in service quality and uneven experiences for participants. The Government need to find a balance between flexibility and consistency. The Committee’s central conclusion is that Connect to Work’s strengths will matter only if that translates into consistent, integrated and properly resourced support on the ground. To date, delivery has not been without difficulty. We heard that early implementation has been more complex and more burdensome than expected. The Department for Work and Pensions acknowledged that aspects of the early process were “clunky and unsatisfactory”. Local authorities told us that delivery plan processes were lengthy and administratively demanding, and guidance was at times unclear or inconsistent. Finally, engagement by the Department seemed to vary across areas. Programmes of this scale depend not only on policy design, but on systems, processes and relationships. Early friction risks undermining confidence and delaying impact. In addition, more than £1 billion of employment support funding devolved to local authorities from Connect to Work for other employment support programmes this year needs to be clearly defined. There should be monitoring of outputs and outcomes. We welcome the steps that the Department has taken to address that, and the Committee will return to this issue to assess progress. Successful delivery needs skilled practitioners and specialist expertise. Some local authorities were confident that they had the necessary capacity, but we also heard of difficulties recruiting staff with the necessary skills, loss of expertise during delayed commissioning, and a wider shortage across the sector. Without the right people to deliver them, even the best designed programmes will not succeed. We therefore call on the Government to set out clearly how they will ensure sufficient capacity, co-ordinate workforce development and address gaps. Perhaps the most significant part is integration. Connect to Work sits alongside other national initiatives, such as Work Well. Its success depends on services delivered by numerous providers, such as those to do with health and skills. Integration, particularly with the NHS, is essential. Where systems are joined up, outcomes improve. Where they are fragmented, people fall through the gaps. Effective triage, clear pathways and strong local partnerships are therefore critical. This is not simply about programme delivery, but a coherent network of support. We recognise the significant investment that the Government are making, but we identified concerns about rigidities in financial management across financial years, and uncertainty beyond the current spending period. For a programme of this scale, long-term certainty is essential, so that local authorities can invest in staff and the infrastructure needed to support delivery. That confidence needs to extend beyond the end of the current spending period. We therefore call on the Government to provide a clear statement of intent about the programme’s future. We also heard concerns about gaps in provision during the transition from the work and health programme pioneer to Connect to Work. In some areas, that left individuals with limited support at a critical time. While the Government have acknowledged these gaps, we are not persuaded that their full impact has been adequately assessed. This points to a broader issue, which is the need for better system-wide planning when programmes change. As noted at the outset, this report is part of a wider programme of work. There is also our “Disability at Work” report. In addition, we have identified Access to Work as a crucial piece of the puzzle; it plays a vital role in supporting people once they enter employment, enabling necessary adjustments and support in the workplace. We therefore intend to examine it in more depth once the Government have set out their proposals for reform. Before I finish, I thank the Committee team, particularly Polina Eaton and Paul Owen, and everyone who provided written and oral evidence to us and attended engagement sessions with us. I believe that our report sets out a balanced assessment of Connect to Work. The programme should help disabled people to get genuine access to meaningful, sustainable employment on equal terms, but its success is not guaranteed. That depends on effective and consistent delivery, a skilled and supportive workforce delivering the programme, integration across services and sustained Government commitment. The policy is sound; the test now is whether the strong foundations that the Government have established translate into consistent, high-quality support in practice. That requires programmes and systems that work together to close the disability employment gap. I commend this report to the House.