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Ten challenges for Welfare to Work
Paul Convery
Centre for Economic & Social Inclusion
www.cesi.org.uk
Ten challenges for Welfare to Work
1. JSA - less than 20% of benefit population
2. Helping claimants facing multiple barriers
3. Solutions tailored to local needs
4. Greater employer engagement
5. Retention and progression
6. Better-off in-work
7. Earlier intervention
8. Improving provider performance
9. Better co-ordination
10. Individualised support
www.cesi.org.uk
A lot has changed since 1997
Macro economic stability - jobs growth "making work pay", Minimum Wage and tax credits; employability programmes - New Deals - plus
practical support such as childcare; services for those most disadvantaged in the labour
market; modernised delivery - single entry point to benefits
and work and private/voluntary sector delivery education and training
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Government targets for next 10 years
a higher percentage employed “than ever before”; raising the proportion of lone parents in work to 70%; narrowing the productivity gap with USA, Germany,
France and Japan "over the economic cycle" majority of UK young people in higher or further
education; halving child poverty (eradicating within 20 years) 750,000 adults to improve basic skills (by 2004) closing the gap in employment rates for ethnic minorities,
50+, disabled, lone parents and in 30 districts with poor labour market position (by 2004).
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New Deal 18-24 job entry
20%
30%
40%
50%
60%
70%
80%
Jan-9
8
Apr-
98
Jul-98
Oct-
98
Jan-9
9
Apr-
99
Jul-99
Oct-
99
Jan-0
0
Apr-
00
Jul-00
Oct-
00
Jan-0
1
Apr-
01
Jul-01
Su
sta
ined
jo
bs
All dests
Know n dests
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New Deal 25+ job entry (% of known leavers)
0%
5%
10%
15%
20%
25%
30%N
ov-9
9
Jan-
00
Mar
-00
May
-00
Jul-0
0
Sep
-00
Nov
-00
Jan-
01
Mar
-01
May
-01
Jul-0
1
Sep
-01
Month
Su
stai
ned
Jo
bs
(%)
Sus. Unsub. Jobs/Leavers
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New Deals need to improve
Less than 40% of entrants get sustained jobs (18-24) Only 16% get sustained jobs (25+) ¼ of entrants (18-24) get un-sustained employment marked geographical variations in outcomes least employable are being helped less ethnic minority job entry – up to 40% lower than for
white participants 1 in 3 participants are re-entrants (18-24)
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Help for those facing severe barriers
Lone parents: childcare costs; tax credits; training grants; minimum income guarantees; IS “run-ons”; self-employment
Disabled people: national network of Job Brokers; intervention at early stages of sickness and disability (job retention and rehabilitation pilots); re-designed and re-funded Supported Employment Programme (“WORKSTEP”)
Older long term unemployed: New Deal 50+ and New Deal 25+ better funded & more flexible
Initiatives for rough sleepers, drug misuers, ex prisoners
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Job retention, advancement and wage gain
Programmes & agencies focussed towards :
– Investing in supplier capability plus increased competition and user choice
–Shift in services towards post-placement
–Standards driven by employer demand, not by public sector supply - with "stretched" outcome goals
–Work orientated services
–Focussed and achievable job goals
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New delivery models and agencies
“Jobcentre Plus”: for all working age claimants – PA service; customised training; ICT based services (vacancies, in-work benefit calculations, “Homes Direct”)
Employment Zones: Personal Job Account; concentration on high unemployment areas
Action Teams: outreach and flexibility Employer engagement: SSCs, Employer Coalitions Local Strategic Partnerships
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New Deal “next phase”
StepUP - guaranteed jobs programme (ILMs) progress2work for drug misusers Adviser Discretion Fund (£300 budget) “Ambition” programmes Tailored Pathways – modular:
– short work focused training
– flexible packages of work experience, training and subsidised employment (“blending and picking” options)
Action Teams
www.cesi.org.uk
Ten challenges for Welfare to Work
1. JSA - less than 20% of benefit population
2. Helping claimants facing multiple barriers
3. Solutions tailored to local needs
4. Greater employer engagement
5. Retention and progression
6. Better-off in-work
7. Earlier intervention
8. Improving provider performance
9. Better co-ordination
10. Individualised support