Economic inactivity and illhealth

1
Economic inactivity and ill-health

• Dave Simmonds
• Director
• Centre for Economic Social Inclusion
• www.cesi.org.uk

2
What does the media think?
3
How did the UK get to 2.7 million Incapacity
Benefit claimants?
4
IB dominates
5
Mental conditions is largest group
6
Changing composition
7
Length of claims
8
But many want to work

• One-third of inactive long term sick and disabled
  want to work but are not looking
• One-third of IB claimants circa 800,000

Long-term sick and disabled who want to work, not
looking
40
35
30
Percentage of all inactive long-term sick
25
20
15
10
5
0
Jan 95
Jan 96
Jan 97
Jan 98
Jan 99
Jan 00
Jan 01
Jan 02
Jan 03
Jan 04
9
Doing more

• Since 1997 finding out what works and building
  consensus
• Target of reducing IB by 1million by 2016
• Halving inflow
• Doubling outflow
• Work-focused interviews
• New Deal for Disabled People
• Pathways to Work
• Others eg. WorkStep, Access to Work
• Supported by enhanced in-work benefits (Tax
  Credits)

10
Simplifying the journey
case- loaded
Personal adviser picks up journey
Work focused interview
Personal capability assessment
new world
Progress to work program
IB claimant
Action plan creation
Make claim
Statutory sick pay
JSA
Old world stopped here
11
Not ready at all
Just not thought about it
Not dismissing idea of work
Willing to work
Working
Getting the message right .. at the right time
Withdraw into yourself Become isolated Lack
confidence Easily confused Low self esteem
Overloading Keep it real Local is very
important Positive upbeat Taking the next step
too big is scary
Money will I be worse off?
Safety net can I go back?
12
Pathways to Work

• Rolling out across UK by 2008
• Programme of work-focused interviews
• Condition Management Programmes
• New Deal for Disabled People
• Other choices

I.B. six month off-flow rate
50
National
Phase 1
45
Phase 2
40
Off-flow rate
35
30
Start of
Start of
25
phase 1
phase 2
pilots
pilots
20
Jul-01
Jul-02
Jul-03
Jul-04
Apr-01
Oct-01
Apr-02
Oct-02
Apr-03
Oct-03
Apr-04
Oct-04
Jun-01
Aug-01
Sep-01
Nov-01
Dec-01
Jan-02
Feb-02
Mar-02
Jun-02
Aug-02
Sep-02
Nov-02
Dec-02
Jan-03
Feb-03
Mar-03
Jun-03
Aug-03
Sep-03
Nov-03
Dec-03
Jan-04
Feb-04
Mar-04
Jun-04
Aug-04
Sep-04
Nov-04
Dec-04
May-01
May-02
May-03
May-04
Month of benefit start
The off-flow rates presented are produced from
the Working Age Statistical Database (WASD). WASD
does not include a proportion of short-term
Incapacity Benefit claims, therefore the
off-flows presented will be lower than actual
rates. However, trends over time will be
consistent.
13
New Deal for Disabled People

• Voluntary and private sector job brokers
• Customers can choose job broker
• Jobcentre Plus informs customers, does not refer
  them

14
Delivery and Public Sector Reform

• Reform of benefits and support
• Reform to encourage activity leading to
  jobseeking
• Extent of conditions
• Level of payments and time-limits
• Delivery
• Capacity of Personal Advisors and brokers
• Capacity for choices and outreach

15
Conclusions

• Have we analysed the problems sufficiently?
• No
• Is there a consensus on analysis and solutions?
• No
• Ill-health
• Re-structuring of economy
• Interaction with welfare
• Have interventions worked so far?
• Qualified Yes
• How about implementation?
• Long way to go!