I wish to update the House that, today, I am announcing structural changes to how this Government tackles entrenched inequality, bringing the drive to reduce socio-economic and class disadvantage into the very heart of government while streamlining our public bodies.

Following the recent cross-government review of Arm’s Length Bodies, which aimed to streamline operations and enhance ministerial accountability, I have decided to move the focus on social mobility in-house, and close the Social Mobility Commission (SMC) as part of this wider programme of reform.

This decision marks a pivotal step in embedding a focus on socio-economic inequality into the heart of government. By winding up the SMC and opening a new Class Unit in government, we will redirect vital resources and expertise to focus on tackling class and socio-economic disadvantage. Sitting alongside existing units in the Office for Equality and Opportunity, this new unit will focus on improving the lives of low-income families and supporting disadvantaged communities, alongside our government’s wider work on rooting out child poverty and supporting social cohesion.

Crucially, the unit will lead the enactment of the Socio-Economic Duty, a new power in the Equality Act that will legally require public bodies to consider how to improve the lives of lower-income families as part of decisions around issues like transport, services and budgets. Officials will work closely with social cohesion, place and regional inequalities teams in MHCLG and as part of the government’s devolution agenda.

Formal closure of the SMC will be achieved through primary legislation when Parliamentary time and consideration allows. In the interim period, the SMC will focus solely on delivering its statutory duties - including its annual State of the Nation report - while we begin a staged transition of resources to new priorities.

The Government recognises the importance of external scrutiny of such an important agenda, and will explore options to make sure that continues.

Officials are currently working through implementation to ensure a smooth, staged transition, and all changes will be carried out with appropriate consultation and full support for affected staff.

This reform ensures we put the fight against disadvantage right where it belongs: at the heart of government. By shifting energy and resources from oversight to direct delivery, we are breaking down the barriers to opportunity, returning power to local communities, and ensuring that a person's background no longer determines what they can achieve.

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