Ten challenges for Welfare to Work

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Ten challenges for Welfare to Work

• Paul Convery
• Centre for Economic Social Inclusion

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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

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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
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New Deal 25 job entry ( of known 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

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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