To fill vacancies, businesses must be more ‘accessible and inclusive’ for staff

Work and Pensions Secretary Chloe Smith vowed to tackle UK labour market shortages.

Chloe Smith is expected to implore businesses to make the labour market more accessible and inclusive in exchange for the Government assisting companies in filling vacancies (Aaron Chown/PA) (PA Wire)

The Secretary of State for Work and Pensions implored businesses to make the labour market more accessible and inclusive in exchange for the Government assisting companies in filling vacancies.

Speaking at the Policy Exchange think tank in her first keynote speech on Thursday, Chloe Smith said: “Businesses can play their part in reducing inactivity and growing the economy by making the labour market more accessible and inclusive.

“In return for the Government helping businesses to fill their vacancies, we’re expecting employers to invest in their workforce’s progression and health.”

Ms Smith refused to answer questions on possible further U-turns on Kwasi Kwarteng’s controversial mini-budget, as pressure builds on the Government to row back on its tax-slashing plans amid questions about how it will balance the books.

Asked if more tax cuts might be reversed, she said: “I’m not in a position to answer your question this afternoon … That will be a matter for the Chancellor to announce in due course.”

In her speech, Ms Smith noted her comprehensive school education and past role as minister for disabled people, health and work.

In a possible hint at her position on whether benefits should be uprated in line with inflation – another contentious issue for the Government – she said: “I’m absolutely determined to use all those experiences, first and foremost, to tackle our labour market shortages, but of course also to protect the most vulnerable in society”.

The Work and Pensions Secretary’s plan for tackling vacancies consists of the department “reforming work incentives and support within the welfare system” and “stopping the flow of people moving into economic inactivity” with the support of “dedicated work coaches”.

It comes after the UK’s unemployment rate dropped to its lowest level for almost half a decade as more Britons left the labour market completely due to illness, according to the Office for National Statistics (ONS).

Over the three months to August, the unemployment rate fell to 3.5% – the lowest since February 1974.

It came after a joint-record rise in the number of people considered “economically inactive” – not in work or searching for work – due to long-term sickness.

Asked if she was comfortable for a rise in immigration to plug the vacancies, Ms Smith said: “I think it makes every sense … to be able to focus on getting British people into the jobs that are here in this country … but I think there is a role for some migration, there will be some skilled roles that cannot immediately be filled, for example.

“So I think essentially there is a balance that is capable of being struck.”

On benefits, Ms Smith pointed to Mr Kwarteng’s announcement in his mini-budget that Universal Credit claimants must take active steps to seek more work or face having their benefits reduced.

“Around half the people on Universal Credit who are required to search for work have been claiming for over two years. With over 1.2 million vacancies, it is right that we are firm but fair in ensuring people are engaging effectively with the support available to take up the opportunities that are there,” she said.

“We need to help people move up to up their hours, take a step up the career ladder to up their pay.”