Adam Price MS, Cabinet Minister for Enterprise, Connectivity and Energy
Today, I am providing an update on the future direction of employability support in Wales.
The Welsh Government remains committed to helping people move closer to employment, enter work and progress in fair and sustainable jobs. I am clear that effective employability support will continue to play an important role in the Welsh economy and in supporting productivity growth across Wales.
Over recent months, I have considered future arrangements for support, including the proposed Employability Support Programme (ESP), which was intended to replace existing employability provision. This consideration has taken place in a context where the environment in which employability support operates is becoming increasingly complex.
These complexities include future changes to Department for Work and Pensions provision, opportunities arising from potential further devolution, and wider shifts in the economy, including the implications of artificial intelligence for labour market participation, workforce demand, and pathways into employment. All of this raises important questions about how employability support should be designed, who it should prioritise, and the interventions most likely to deliver positive outcomes.
This is a time of both uncertainty and opportunity which may require us to adapt our approach during this Senedd term. In this context, it is important that future provision is informed by the strongest available evidence and that we retain the flexibility to respond to changing circumstances.
Maximum flexibility is required to consider how best to respond to a rapidly evolving policy and labour market landscape. While procurement may remain an appropriate delivery mechanism in the future, I do not believe it would be right at this stage to make a substantial long-term policy and financial commitment through the ESP model.
People can only move into work if jobs exist in the first place. Helping people become job-ready is only half the challenge. The other half is ensuring there are employers ready to recruit and businesses ready to grow. Too often, governments have focused on the supply side of the labour market without paying enough attention to demand. We are determined to address this.
That is why I have concluded that the previous Government’s ESP procurement will not proceed. I have also decided not to take forward the associated new grant funded element of the ESP. I recognise the significance of this decision, particularly for organisations that have engaged extensively in the procurement process.
Instead of progressing the ESP programme, I am today announcing that the Welsh Government will extend the Jobs Growth Wales Plus (JGW+), contract for a further year to 31 March 2028. This will provide stability for participants and delivery partners while ensuring that support remains available to those who need it. Decisions on the future of the grant funded programmes of Communities for Work+ and ReAct+ will be taken as part of the Welsh Government’s draft budget process this autumn.
Our ambition remains to help more young people progress into education, employment and training, working across departmental boundaries to ensure support is better aligned with wider services and responds to the full range of barriers that individuals may face. Over the coming year, we will consider demand side incentives to employers as well as supply side support to individuals. We will reflect on emerging evidence and explore how employability support can best contribute to our productivity mission, wider economic objectives and dovetail with our skills interventions and approach to apprenticeships.
I am committed to helping people fulfil their potential through work and to ensuring that we respond to a rapidly evolving landscape. We cannot afford to be complacent. We must continue to evaluate what works, call out what does not, and be prepared to change course where the evidence demands it. I will provide further updates as this work progresses.