The devolution of employment has the opportunity to better align future programmes with local labour markets, employer demand and help boost local economic growth. It could also enable better integration with skills, health and other services to provide a more holistic offer for participants.

However, for this to be successful, the government must ensure that all local commissioners, particularly new MSAs and areas not currently covered by devolution arrangements, have the expertise and capability to commission high-quality employment support. There is a risk that devolution creates inequity between areas, and that areas without sufficient expertise or capability in commissioning employment support could deliver worse outcomes for residents.

The experiences of UK Shared Prosperity Fund and Connect to Work commissioning demonstrates the variation in commissioning capability across the UK. DWP should retain national responsibility for minimum standards, outcomes, data, evaluation and performance oversight, and continue to commission where devolved arrangements are not yet in place.

There are significant risks associated with the transition between existing and future programmes. The Government should manage the transition carefully. Where successor provision will not be ready before Restart referrals end, the Restart Scheme should be extended for long enough to provide a seamless transition. This would avoid the loss of experienced staff, employer relationships and established delivery capacity that the future system will need.