Spending Review: comment from the Institute for Employment Studies

IES News

11 Jun 2025

Commenting on the Spending Review announcements by Chancellor Rachel Reeves, Naomi Clayton, Chief Executive at the Institute for Employment Studies (IES), said:

"Today’s Spending Review is set against a backdrop of growing concern over a stalling labour market and global economic uncertainty. With 2.8 million people currently out of work due to long term ill health, it is encouraging to see the Pathways to Work additional investment of £1 billion by 2029-30 protected. This will sit alongside continued investment in Connect to Work and WorkWell, two government-backed programmes to support people with health conditions or disabilities find and stay in work, and the introduction of a new contracted employment support programme. However, questions remain over whether this investment will be sufficient, and delivered quickly enough, to mitigate the impacts of planned benefit cuts.   

"There is also a welcome emphasis on young people, with 12.5% of young people not in education, employment or training and at risk of long-term scarring effects. The extension of the eight youth trailblazers as temporary 'test and learn' initiatives, along with the nationwide roll out of Youth Hubs and investment in training for young people, marks a positive step. The government now needs to integrate and scale up support to ensure that every 16-24-year-old has access to quality job and training opportunities through the Youth Guarantee."