www.cesi.org.uk

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