The Financial Case For FullTime Work

1
The Financial Case For Full-Time Work
2
Purpose of the Workshop-

• To highlight and demonstrate that benefits are
  not a barrier to employment
• To show that people who opt to work full-time are
  better off financially when they take up
  employment
• To stress the importance of benefits advice for
  service users before and after employment

3
North Lanarkshire Council Supported Employment
Service

• Service launched 1999 in response to people with
  learning disabilities saying they wanted to work.
• When developing the service, the Council decided
  they would try and achieve the goal of getting
  people full-jobs 16 hours plus
• Income maximisation is a key component of the
  supported employment strategy.

4
Service Principles

• Service Developed and Led by Social Work
• Partnership Working
• Corporate Council Departments
• Nhs Lanarkshire
• Scottish Enterprise
• DWP
• Private Sector Employers

5
Service Principles

• Jobs should be in an integrated workplace
• Jobholder should be paid the rate for the job
• The job should be full-time 16 hours plus per
  week
• Do not engage in voluntary work
• Do not participate in training for work schemes
• Do not take jobs of less than 16 hours per week

6
Supported Employment Model

• Vocational Profile
• Job Finding/Marketing
• Job Coaching
• Job Monitoring

7
Referral Process

• People with learning disabilities
• People with mental health problems
• People with acquired brain injuries
• People with sensory impairments
• All service users must have a community care need

8
Service Outcomes February 2009

• 219 Individuals who use services
• 196 Completed vocational profiles
• 23 Ongoing vocational profiles
• 68 Job Finding/Marketing
• 129 Current Jobs
• 86 Private Sector
• 43 Public Sector
• 187 Total Jobs (including 2/3rd jobs)
• 125 Private Sector
• 62 Public Sector

9
Income Maximisation

• On Referral all service users have a benefit
  check
• Parents and carers also have their benefits
  checked if appropriate
• Maximising income prior to employment creates a
  feeling of trust
• North Lanarkshire Council have demonstrated that
  Social Security Benefits are not a barrier to
  employment

10
AN EVALUATION OF THE OUTCOMES OF SUPPORTED
EMPLOYMENT IN NORTH LANARKSHIREDR STEPHEN BEYER
WELSH CENTRE FOR LEARNING DISABILITIESSUMMARY

• People in jobs worked 24.2 hours on average 22.1
  for learning disability
• People were on average 113.2 better off after
  employment 94.8 for learning disability
• Shift from Income Support before, to Working Tax
  Credit in employment

11

• Average Gross earned wages in employment was
  134.29 per week (129.60 for LD)
• Earnings represented 51.5 of income in work
  (50.3 for LD). The rest being made up of
  Disability Living Allowance and Working Tax
  Credit.
• 89 of workers received a Working Tax Credit when
  in work (99 for LD) 99 of workers received DLA
  in some form when in work
• The cost of North Lanarkshire Supported
  Employment was 4303 per person per annum
• The equivalent cost per person for locality
  services based on actual capacity for locality
  Support Services was 14.998 per person per annum.

12
Better Off Calculations

• Paul was 23 years old when referred to the
  service. Paul has a learning disability and a
• physical disability and lives with his parents.
  Paul (26) started work on 9th July 2006 as a
• Dining Room Host with McDonalds and works 16
  hours per week.

Overall better off figure 167.58
13
Better Off Calculations

• Lynsay was 17 when referred to the service.
  Lynsay has a learning disability and lives with
  his parents.
• Lynsay (18) worked as an Admin Assistant for the
  Child Support Agency from 22 January 2001 to 24
  March
• 2006 and worked 35 hours per week. From 27 March
  2006 aged 26 he has been employed as an Admin
• Assistant with Scottish Executive Transport
  Scotland working 37 hours per week.

Overall better off calculation 235.48
14
Benefit Issues

• Disability Living Allowance and Work
• DLA is paid to people who are in or out of work
• DLA is wholly dependent on the persons care or
  mobility need
• Work is not a reportable relevant change of
  circumstances for DLA.

15
Housing Council Tax

• People who pay rent and who are in work can
  qualify for Housing Benefit. However it is a
  means tested benefit.
• The same principles apply to Council Tax Benefit.
• Where the level of Housing or Council Tax
  Benefits are reduced, it is possible to claim
  discretionary Housing Benefit Council Tax
  payments.

16
Carers Allowance

• Where someone gets a job, Carers Allowance will
  continue to be paid to the carer.

17

• John is 28 years old, he earns 100 and
  receives Tax Credit of 80 in addition he has DLA
  middle rate care of 44.85. John lives in rented
  accommodation, his rent is 55 per week. His
  Housing Benefit is calculated as follows
• Applicable Amount Income
• Personal Allowance 60.50 Earnings 100.00
• Severe Disability Premium 50.35 Tax Credit
  80.00
• Disability Premium 25.85 Total 180.00
• Total 136.70 Less earnings
• disregard 20.00
• Total 160.00
• Difference between Earnings and Applicable
  Amount
• 160.00
• 136.70
• 23.30 X 65 15.14
• Rent 55.00 minus 15.14 39.86 Housing Benefit

18

• Earnings 100.00 224.85
• Tax Credit 86.00 15.14
• DLA 44.85 209.71
• Total Income 224.85
• Applicable Amount 136.70 209.71
• After paying his rent he is 73.01 better off by
  working full-time.

19
The Advantages of Full-Time Employment for
Service Users

• By working more than 16 hours per week- people
  are better off
• Improved self confidence
• Greater self esteem
• Social integration
• Gain increased skills, social as well as
  vocational

20
Benefits to Others

• Parents Carers
• Savings to the exchequer
• Savings to the Local Authority
• Improvements in the Local Economy
• Better public perception of disability

21
Benefits for the Wider Society

• Less demand for day care placements
• Businesses and employers have access to a larger
  pool of labour
• Employers who recruit from supported employment
  services save on recruitment and training costs
• Employers have a loyal and sustainable workforce.

22
Contact Details

• George McInally
• georgemcinally_at_sky.com
• ( 01698 822324