Call for employment law to be devolved to Scotland to help tackle child poverty
A new report says devolving all employment law to Scotland could help tackle child poverty and boost the economy.
The IPPR Scotland thinktank said the split responsibility between the UK and Scottish governments on employment means those looking to get a job have “damaging experiences”.
This new report suggested reform was needed as tens of thousands of adults and children were at risk of remaining trapped in poverty because there were not enough well-paid jobs to go around.
Philip Whyte, director of IPPR Scotland, said: “The current system is arguably failing countless people who are trapped between a devolved system that suffers from a lack of scale and a reserved system that is more often punitive than supportive.”
Scotland has two devolved employability programmes,
No One Left Behind and Fair Start Scotland. However, they are struggling from a lack of funding and not reaching enough people to meet the Scottish Government’s employment targets.
However, the majority of jobseekers in Scotland will go through the Jobcentre Plus system, which is reserved to Westminster. In the final quarter of last year, only three per cent of Scottish jobseekers were enrolled in a devolved employment programme.
IPPR Scotland said this system left people feeling “unvalued” and “unsupported” as it pushed applicants to take any available job regardless of the person’s interest or capacity, and instilled a “constant fear” of being sanctioned.
The think-tank is now calling for a complete overhaul of employment law, including devolving all employment support powers, such as the Jobcentre Plus network, to the Scottish Parliament.
Mr Whyte said: “While devolved programmes show signs of success – but could yet do more – ultimately they are held back by responsibility being split across governments and a reserved Jobcentre system, which is more often focused on compliance rather than helping people reach their full potential.
“A reformed system, through increased powers, would be the next natural step in delivering a system that is person-centric and works towards positive outcomes, so that more people can enter, stay and progress in meaningful work. That’s not just good for individuals and families, but also good for the economy.”
Other measures the report suggests the Scottish Government could take include ensuring everyone is paid the real living wage – something the think-tank estimated would lift 70,000 people out of poverty.
Bringing unemployed people into part time and fulltime work would lift an additional 90,000 and 110,000 respectively out of poverty.
IPPR Scotland predicted this could raise an extra £1.6 billion through higher tax and National Insurance contributions, and save over £600 million a year on social security spending.