INTEGRATED SOCIAL SERVICES IN NORWAY – A NEW LABOUR AND WELFARE ADMINISTRATION

1. INTEGRATED SOCIAL SERVICES IN NORWAY – A NEW LABOUR AND WELFARE ADMINISTRATION Warsaw 14.6.2007 ODD HELGE ASKEVOLD, MINISTRY OF WORK AND INCLUSION.

2. The presentation will focus on: • The need of reforming the ”old system”- problems and challenges • The main goals of the reform • Guiding principles and requirements to the new employment and welfare adm. • The main elements of the reform • How did we do it? – implementation • The results – lessons for others?

3. The old system (before 2006) Division of labour between three different services, two different levels of responsibilities (state and local government) and with different organizational structure: • The National Insurance Administration (with regional and local branches in all municipalities) • The Employment Service Administration (with regional and local branches – in more than 1/3 of the municipalities) • Local Government responsible for social assistance services (431 different municipalities)

4. Responsibilities • The National Insurance Administration: Almost all social security benefits and some activation measures and benefits related to integration at the work place • The Employment Service Administration: Unemployment benefit, employment measures and public employment services • The Local Government: Social assistance benefit and social services • Social policy-regime since early 1990s - ”work shall be the first option” - the work-line as a guideline

5. Problems & Challenges • Too many people of working age are wholly or partially outside the labour force and receive benefits for a long time • A substantial part of these persons need assistance from at least two and sometimes all three of the agencies before they are fit for a job. • Many people therefore meet a fragmented administration which does not reflect the users need for a coordinated assistance across traditional disciplinary and agency boundaries. Low cost effectiveness. Double work and weak economics of scale.

6. Consequences • Create ”not-my-table-problems” and grey-zones • Many persons receive welfare benefits before rehabilitation and active measure • They become locked in benefit schemes for a long time before offered an activation measure or work • An expensive system

7. Figure 1: Number of persons of working age who are wholly or partially outside the labour force and receive public benefits

8. The main goals of the reform • More people in activity and work - reduce the number of persons depending on welfare benefits • A more user-friendly, coordinated and holistic system • A more effective employment and welfare administration

9. Principles and requirements • No major changes in responsibility between state and local authority • Responsibility for policy instruments and measures relating to employment/reduced work capacity concentrate in one agency • Easily accessible point of contact with access to all of the employment and welfare services (one-stop-shop principle) • Quickly evaluation of needs and everyone offered a coordinated range of services • No new organisational divisions which create new needs for coordination

10. The main elements of the new organisation. • Merging the National Insurance Administration and Public Employment Administration into one single state agency- The Employment and Welfare Administration • Establish a joint front line service with an Employment and Welfare Office (EWO) in every municipality • The Social Assistance Scheme still a responsibility of the municipality, but closely coordinated with and integrated into the new Employment and Welfare Office (EWO) • (A partnership-model between the state and local authorities) • Reorganising the ministries by merging the responsibility of employment and social welfare/social security into one single ministry.

11. Construction of the local Employment and Welfare Office (EWO). • A mix of compulsion and freedom of choice • Two kind of measures – compulsion by law and (local) contracts

12. Stated in the law: • The local branches of the Employment and Welfare Administration had to coordinate their activities with local government social services • mandatory one-stop-shop in every municipalities • A minimum requirement regarding which kind of services from the local government that should be integrated in the EWO • i.e. social assistance benefit, counselling and individual plan. • Municipalities had to make contracts with the Employment and Welfare Administration regarding how to design and run the EWO on aspects that were not stated in the law. • A ”framework agreement” between the ministry and the Norwegian Association of LocaI and Regional Authority underpinning the local contracts (what items could be useful to put in the contract)

13. The contracts • Examples of what could be agreed upon locally • To integrate still more services from the local government in the EWO. • The design and ”organisational map” of the office • Either to have a divided leadership or one common leader (from the state or the local government) • To delegate authority across the two levels of responsibility.

14. The responsibility of the EWO. • Information to users, collaboration partners and the public in general • Provide services and vocational rehabilitation/training • Counselling and follow-up those who are able to work, eventually after some rehabilitation and training. • Public employment service and labour market relations • Manage and transfer social assistance benefit • Coordinate services from other suppliers by composing individual plan in close collaboration with the users such as: • medical rehabilitation, health services, education system, and housing authorities

15. Other important elements • Organise the management of social security benefits in specialized and more centralized units • The merits: • Concentrate competence in decision making • Increase the quality of task solving • Strengthen the work focus of the EWO. • Establish and design working processes and working methods for the whole EWO across levels of authority. (possible stated by law) • Rise the competence and qualifications of those employed in the new Labour and Welfare Administration and the EWO. * A new IT-plattform for the new administration and the EWO

16. Summary – the questions • Why reforming the system? • Why coordinate and integrate social security/social services and the employment side (and not for instance medical rehabilitation and health services)? • Why a ”local partnership” between state and local government? • Why a huge Labour and Welfare Administration? • Why reorganize the ministries? • Was there any oposition to the choices that were made?

17. Implementation Pilots New Labour and Welfare Adm. Submitted byParliament New law was passed Interim organisation Establish EWOs 2010 1.1.2005 1.1.2006 1.1.2007

18. Lessons to learn? • Explicit regarding definition of the problems and the main goals • Underline and repeat the main goals- make sure all understand and stick to the goals • Everyone is well informed • Decisions and goals are well anchored – everyone has the possibility to participate • Clear framework of responsibility • Include og even start the process by coordinating/integrating (relevant parts of) responsible ministries.