Blog
22 April 2026

Economic Activity: The Challenge for Commissioners

The Employment Related Services Association (ERSA) & Department for Work and Pensions (DWP) Connect to Work (CtW) market awareness event for supported employment was attended by over 500 people.

The size and scale of the programme is small when benchmarked against economic inactivity and is likely to have a limited impact.

The size and scale of the programme is small when benchmarked against economic inactivity and is likely to have a limited impact. Reducing economic inactivity has been high on the Government’s policy agenda, but there needs to be greater clarity about who is classified as economically inactive and what support they should receive. 

Welfare reform through the migration of claimants onto the Universal Credit No Work Requirements(UCNWR) is a primary driver. There are over 7.2 million claimants in receipt of Universal Credit; UCNWR represents 40% of the UC caseload and has accelerated over the last five years showing no signs of slowing down.

This trend is not new. During the 1990s there was a migration of claimants from unemployment benefit to Incapacity Benefit who received very limited job support, resulting in longer term inactivity for most claimants (50% in receipt of Incapacity Benefit for 5+ years)

This issue presents local Commissioners with key policy challenges, including stemming the flow of residents who are assigned to the UCNWR group. This will require:

“Reducing economic inactivity has been high on the Government’s policy agenda, but there needs to be greater clarity about who is classified as economically inactive and what support they should receive.”

This trend is not new. During the 1990s there was a migration of claimants from unemployment benefit to Incapacity Benefit who received very limited job support, resulting in longer term inactivity for most claimants (50% in receipt of Incapacity Benefit for 5+ years)

This issue presents local Commissioners with key policy challenges, including stemming the flow of residents who are assigned to the UCNWR group.

If you’d like to discuss how 50 Degrees can support you to develop the Connect to Employment service, please contact person@50-degrees.com

You may also like

August 21, 2026

Social Value shouldn't be this hard

Social value questions are often the ones bid writers dread. They can feel vague, time-consuming, and hard to nail even when you know your organisation is doing brilliant things.

September 23, 2026

Local Connect to Work: Common Programme, Different Commercial Realities

Connect to Work has a common national purpose: helping people with health conditions, disabilities and other barriers to get into and stay in work through personalised, evidence-led support. But a common programme does not create a common commercial model.

September 29, 2026

FES is changing – providers shouldn’t pause their preparation

While the underlying employment support models are relatively prescribed, the commercial arrangements at local level have varied considerably.

Explore all

Stay up to date

Stay ahead with the latest procurement news, tender insights, market updates and company developments.

linkedin Follow us