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Employment poverty and housing: the run-up to the 2024 election

Lynsey Sweeney urges government to work with social housing providers to design effective policy for tackling economic activity, with employment opportunities and support at a local level

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Communities that Work’s Lynsey Sweeney urges government to work with social housing providers to design effective, local, policy for tackling economic activity #UKhousing #SocialHousingFinance

The UK has a hidden employment crisis that is disproportionately affecting those who live in social housing.

 

The unemployment rate is sitting at around four per cent, but the number of people who are economically inactive (people who are out of work and have not been looking for work in the past four weeks) is on the rise and has been since the pandemic.

 

The current number of people who are economically inactive is around nine million, compared to 8.5 million pre-pandemic.

 

Statistics from the Office for National Statistics (ONS) show that there were 500,000 more people out of the labour force due to long-term sickness between spring 2019 and summer 2022.

 

This economic inactivity has grown considerably since the start of the pandemic. More than half (55 per cent) of those out of the labour force are aged 50-64, while the proportion of 25 to 34-year-olds out of the labour force rose by 42 per cent.

 

This rise is showing a worrying trend: people are leaving work and not returning. We know that the reasons for economic inactivity can be complex and multifactorial with links between age, health and care responsibilities.


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But we do know there are currently around 1.7 million people who are out of work and want to be in work.

 

Many of these 1.7 million people are facing a set of complex barriers to secure employment opportunities and a disproportionate number are social housing residents.

 

These challenges are often overlooked by policymakers and the latest government announcements as part of the Autumn Statement translate to a real-terms cut in support, and do not address the core issues faced by those who are currently economically inactive.

 

Communities that Work is the national membership body that represents social housing providers that provide employment support.

 

We act as advocates for our members and raise the profile of the good work they do to support residents into employment with key government stakeholders. Alongside this we conduct independent research.

 

Our latest research shows that contrary to existing beliefs, the majority of social housing residents of working age are in work. However, there is a greater proportion of economic inactivity than in the general population.

 

The Department for Work and Pensions’ own data – from the Households Below Average Income (HBAI) survey – shows that one in three households in relative income poverty live in social housing. Efforts to tackle poverty, reduce inequalities, and increase employment must therefore take account of, and effectively reach, social housing tenants.

 

But the current systems of support provided by the government are failing to support those who need it most.  

 

Now more than ever, the government needs to work with housing providers and local leaders to directly tackle systemic issues within the UK’s approach to designing and delivering employment support.

Working with our members, Communities that Work recently launched A Future that Works – the campaign calling on the next government to redesign employment support and commit to tackling the growing problem of economic inactivity.

 

If we don’t commit to action now, we risk pushing more families into poverty with reduced support to lift them out.

 

Our three actions are centred on getting the right people – housing providers, local leaders and government stakeholders – around the table to design policy that sits closer to those it aims to help.

 

First, we are asking the next government to commit to end employment poverty within five years. There needs to be consistent and long-term funding for supporting people into work. All too often the support is scattered across the country and fades in and out based on where, how and to whom funding is awarded.

 

Second, we are asking for a commitment to focus the support locally. How to respond to the needs of the local community is designed best by those who work and live in the area. There needs to be a focus on providing employment opportunities locally – where they are needed, and for local people.

 

Our third ask is that the government doesn’t try to go it alone. Housing providers and local councils already invest a great amount into supporting their residents into meaningful employment, but we need to work more closely and partner with the government to design and implement the best local employment support.

 

The housing sector is in a unique and perfect position to support more people into meaningful work. We need to reserve a seat for social housing at every policy table for employment support, to design and implement a Future that Works for all.

 

Lynsey Sweeney, managing director, Communities that Work

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