1. 1 Economic inactivity and progression Peter Robinson Senior Economist Institute for Public Policy Research

2. 2 Two key research challenges How do we explain why original (or gross or market) income inequality has been flat/wage inequality has not been rising at such a fast rate? What combination of policy instruments could help bring about a significant reduction in inactivity?

3. 3 Key policy challenge 1 A strategic choice between prioritising the reduction of inactivity or the promotion of progression (given the capacity constraints on Jobcentre Plus)

4. 4 Key policy challenge 2 How to continue to make progress in enhancing benefits/tax credits in order to reduce poverty and improve incentives in a harsher fiscal climate.

5. 5 Key policy challenge 3 Are we going to offer choice to adults in further education and training or an undifferentiated diet of level 2 NVQs?

6. 6 Key policy challenge 4 What should the government use its remaining political capital with employers to achieve? (e.g. parental leave or training)