Employment support should be devolved to mayoral strategic authorities (MSAs) and Jobcentre Plus scrapped entirely, according to a new report from think tank Re:State.

No Job for the Centre argues MSAs should take over primary responsibility and the budget for in-person, joined-up employment support for everyone except those likely to find work quickly, who would instead be served by a universal, AI-enabled digital offer from central government.

This would include people on income-related benefits such as Universal Credit, currently the responsibility of Jobcentre Plus. The Department for Work and Pensions would retain benefits administration and sanctions, with the centre focused on evidence, standards and transparency.

The report says Britain's employment support system is failing, with employment rates below pre-pandemic levels and economic inactivity higher. It highlights that over a million 16-24-year-olds are not in education, employment or training, while claims for Universal Credit Health or Employment and Support Allowance have risen from just over 2 million before the pandemic to 3.7 million by mid-2025.

Work coaches now handle around 100 claimants each, sometimes seeing individuals for as little as 10 minutes.

Responding to the report, Cllr Kam Rai, London Councils’ Deputy Chair and Executive Member for Growth, Economy, Skills and Employment, said: ‘Moving away from a centralised system and towards devolved support will be more responsive to local needs. London boroughs know our communities best, are closest to the people who need our help, and are well placed to deliver improved results. Working alongside the Mayor of London, we are determined to ensure our residents get the support they require.

‘Collectively London boroughs invested £51.6m and supported over 45,000 Londoners to find good work through local job brokerages in 2024-25. With more devolution of powers and resources, we would make faster progress supporting people into good-quality work.’