NAWRA

1

• NAWRA
• Glasgow September 2004
• Incapacity Benefit Pilots
• Alison Murray

2
The Pilot(s)

• Pathways to Work
• Work Focussed Interviews
• Working Neighbourhoods
• Bridgend, Renfrewshire, Derbyshire, Somerset,
  Essex, E Lancashire, Gateshead

3
Research

• Incapacity Benefit Pilots in collaboration with
  the Policy Studies Institute, National Centre for
  Social Research and the Institute of Fiscal
  Studies . Researchers. Roy Sainsbury, Anne
  Corden. Katharine Nice. Funder - Department for
  Work and Pensions. Duration - September 2003 to
  March 2007.

4
Why IB?

• 2.7 million working age on incapacity benefit (1
  in 13 adults)
• 1 million people sick each week
• 3000 remain off for 6 months and
• 80 not work in next 5 years

5
What makes us so sick?

• 35 mental and behavioural disorders
• 16 Other conditions or not specified
• 22 musculo-skeletal and connective tissue
• 11 circulatory and respiratory diseases
• 10 nervous system
• 6 injury and poisoning

6
New Claimants

• Initial Work focussed interview
• Skilled Personal Advisers
• Action Plans
• CMPs
• Financial Incentives

• 5 or more WFIs
• Compulsion
• PCA (12 weeks)
• Health Management
• Back to Work

7
Work-focussed Interviews

• Schedule 2 Specified benefit
• Reg 5 (1) The interview
• Reg 6 (1) Waiver
• Reg 7 (1) Deferment
• Reg 8. Exemption
• Reg 9.(1) Taking Part
• Reg 10 (1) Failure to take part

8
Relevant Decision

• Regulation 11 - matters to be taken into account
  in determining good cause.
• Regulation 12 provides an appeal right to an
  appeal tribunal under section 12 of the Social
  Security Act 1998 (c. 14).

9
Benefit Reductions

• Whole reduction ceases
• New facts (within one month)
• Special circumstances (longer)
• Relevant decision can be revised
• Move out of WFI area (no reduction)
• Turn 60 (no reduction)

10
Working Neighbourhoods

• On specified benefit
• 13 weekly interviews
• 5 interviews for claimants
• Up to 8 interviews for partners
• Waiver, defer or exemption

11
Consequences

• As if they never claimed
• terminate benefit the next week
• benefit reduction for each relevant decision
• 20 of personal allowance of 25 year old
• Good Cause
• Appeal Rights
• Employment Zone Programmes

12

• Maria Eagle We will be publishing reports
  although the full and final impact assessment
  will not be available until early 2007. An
  interim assessment of the impact of the
  incapacity benefit pilots will also be available
  in summer 2005. we will be assessing direct
  feedback from those responsible for, and
  participating in, the pilots, and apply
  appropriate lessons more widely.

13

• Maria Eagle there will be approximately 14,000
  new claims for incapacity benefits during
  200304, and 65,000 1 during 200405. In
  addition, all the pilot provision is available to
  existing incapacity benefit recipients in the
  pilot areas, numbering approximately 193,000.
  Their participation is currently on a voluntary
  basis.

14

• Maria Eagle One of the purposes there is scope
  for savings...potential to generate savings which
  will outweigh the projected pilot costs of
  approximately 40 million a year. However there
  has been limited previous success in this area on
  which to make a firm assessment of the financial
  implications.
• The primary purpose to achieve their aspirations
  to return to employment and to avoid long-term
  incapacity.

15
Running Costs

• latest estimates for the running costs from 2004
  to 2006 are as outlined 200304 20040
  5 200506
• Personal advisers 625,895 3,020,839 3,160,150
• Return to Work Credit 248,560 5,594,400 9,038,400
  
• Condition Management 887,500 8,651,211 8,202,00
  
• Other costs 3,577242 22,733,550 19,599,450

16

• Under Pilot IB reforms Schlumberger have reduced
  the average time taken to carry out medical
  examinations from 52 days to 30 days, which has
  contributed to an annual cost saving of 21
  million.
• On the basis of evidence from Incapacity Benefit
  reform pilots, the Department consider it is
  possible to reduce this further to 15 days, which
  would result in further financial savings as
  ineligible customers are identified quicker.

17
Customer Quotes

• Friends have remarked on the change in me since
  the programme. My confidence has really
  improved.
• I would recommend this course to anyone, it
  really boosted my confidence.
• It gave me an idea of what I would like to do.
  Exercises were informative and fun.

18
Other Resources

• SI No 2004 959
• SI No 2003 No 2439
• Memo DMG Vol 1 02/04
• Memo DMG Vol 1 07/03
• Notes for GPs www.dwp.gov.uk/medical/hotopics/pa
  thways.asp