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EAST LINDSEY’S INCAPACITY CLAIMANTS

EAST LINDSEY’S INCAPACITY CLAIMANTS. Prof Steve Fothergill CRESR, Sheffield Hallam University. WHICH BENEFITS?. Incapacity Benefit NI credits for incapacity – mostly Income Support Severe Disablement Allowance. NATIONAL CONTEXT. 2.6m claimants of working age

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EAST LINDSEY’S INCAPACITY CLAIMANTS

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  1. EAST LINDSEY’SINCAPACITY CLAIMANTS Prof Steve Fothergill CRESR, Sheffield Hallam University

  2. WHICH BENEFITS? • Incapacity Benefit • NI credits for incapacity – mostly Income Support • Severe Disablement Allowance

  3. NATIONAL CONTEXT • 2.6m claimants of working age • Four-fold increase over last 30 years • Men v women • Huge local and regional variations

  4. EAST LINDSEY’S INCAPACITY CLAIMANTS,May 2007

  5. IB CLAIMANT RATE: Selected authorities,May 2007 TOP 6 IN ENGLAND LINCOLNSHIRE Easington 17.9 East Lindsey 9.8 Knowsley 13.6 Boston 8.1 Liverpool 13.3 Lincoln 7.8 Blackpool 13.2 West Lindsey 6.3 Hartlepool 12.9 South Holland 6.1 Barrow in Furness 12.7 North Kesteven 4.7 South Kesteven 4.7 Sources: DWP, ONS

  6. IB CLAIMANT RATE,May 2007

  7. IB CLAIMANT RATE, May 2007

  8. EAST LINDSEY’S IB NUMBERS 2000 6,980 2001 7,330 2002 7,480 2003 7,690 2004 7,830 2005 7,840 2006 7,700 2007 7,710 Figures are for February each year Source: DWP

  9. THE NATIONAL IB PROJECT • ESRC core funding • National data analysis Large scale interview survey of IB claimants In-depth follow-up interviews • Eight case study areas

  10. CASE STUDY AREAS Barrow in Furness (Cumbria) Great Yarmouth Blackpool Hull Easington (Co Durham) Knowsley (Merseyside) East Lindsey (Lincs) Wansbeck (Northumberland)

  11. THE EAST LINDSEY CASE STUDY • Interview survey of IB claimants • Supplementary analysis - Overall trends - Interviews with key players - In-depth interviews with some claimants - ‘Absorption capability’ of East Lindsey economy - Comparison with other survey areas

  12. INTERVIEW SURVEY • All face-to-face • 312 completed interviews • Names and addresses from DWP • Good geographical spread • 119 men, 193 women • Some opt-out but broadly representative

  13. Occupation, skills Work history Reasons for job loss Duration on benefit Area of origin Health limitations Contact with Pathways etc Looking for work Job aspirations Target earnings Obstacles to employment Reasons for not looking Area of job search Transport Childcare issues Temporary / casual work Self-employment Benefits Other sources of income Partner’s income Household composition Housing tenure Age SURVEY ISSUES

  14. AGE OF EAST LINDSEY’S IB CLAIMANTS Men (%) Women (%) 16-24 3 3 25-34 7 13 35-44 16 19 45-54 16 39 55-59 23 24 60-64 34 3 ------------------------------- Total 100 100 Source: East Lindsey survey

  15. LENGTH OF TIME ON INCAPACITY BENEFITS Source: East Lindsey survey

  16. LOCATION WHEN IB CLAIM STARTED Men (%) Women (%) East Lindsey 76 82 Rest of Lincolnshire 1 1 Rest of East Midlands 8 4 Yorkshire 6 3 Rest of UK 4 7 Not specified 4 4 Source: East Lindsey survey

  17. USUAL OCCUPATION Source: East Lindsey survey

  18. SOME TYPICAL OCCUPATIONS MEN WOMEN Farm worker Nurse Miner Carer / care assistant Joiner Factory operative Builder Shop assistant Security guard Chef / kitchen assisant Painter and decorator Barmaid Factory operative Cleaner HGV driver Café assistant Arcade worker Secretary / admin Machinist Accounts Source: East Lindsey survey

  19. SELECTED QUALIFICATIONS Source: East Lindsey survey

  20. MAIN REASON FOR LAST JOB ENDING Source: East Lindsey survey

  21. NATURE OF ILL HEALTH OR DISABILITY Men (%) Women (%) Musculoskeletal 28 31 Mental, behavioural 22 28 Circulation 11 3 Nervous system 9 11 Injury, poisoning 5 3 All other 25 24 Source: DWP records on East Lindsey survey respondents

  22. HEALTH LIMITATIONS Source: East Lindsey survey

  23. HEALTH EXPECTATIONS Source: East Lindsey survey

  24. JOB ASPIRATIONS Source: East Lindsey survey

  25. WOULD LIKE A JOB NOW OR IN FUTURE:Survey areas Men (%) Women (%) Easington 40 Easington 34 Great Yarmouth 27 Barrow 32 Barrow 27 EAST LINDSEY 28 EAST LINDSEY 25 Great Yarmouth 28 Hull 23 Knowsley 27 Knowsley 20 Blackpool 27 Blackpool 19 Hull 25 Wansbeck 17 Wansbeck 24 Source: Sheffield Hallam surveys

  26. REASONS FOR NOT WANTING JOB Men (%) Women (%) Poor health 77 82 Too much uncertainty 11 8 Decided to retire 9 5 Family / children 1 6 NB Respondents could give more than one reason Source: East Lindsey survey

  27. BENEFITS RECEIVED Men (%) Women (%) Incapacity Benefit 85 73 Disability Living Allowance 51 65 Council Tax Benefit 57 50 Income Support 26 38 Housing Benefit 40 40 Source: East Lindsey survey

  28. OTHER INCOME Men (%) Women (%) Temp / casual paid work 1 1 Pension income 27 9 Partner in work 18 21 Partner claiming benefit 31 18 Partner with pension income 12 9 Other personal income 1 1 Source: East Lindsey survey

  29. FORMIDABLE OBSTACLES TO EMPLOYMENT • Very long duration on benefit • High share with no formal qualifications • Low-skill manual experience • Prominence of ill health • Low share who say they would like a job • Even lower share who are presently looking for work

  30. ASSESSMENT • Long-term weakness of East Lindsey economy means that there are not enough jobs - especially well-paid jobs - to go round • IB numbers have become dominated by men and women squeezed out through normal competition in the labour market - the least skilled - the least healthy - and (probably) the least motivated • In-migration of claimants adds substantially to local problem

  31. ‘BACK-TO-WORK’ TARGET GROUP Men Women IB claimants, Feb 2007* 4,130 2,560 Would like a job now or might 25% 28% like one in the future ______________________ Target group 1,040 720 *excludes SDA claimants Source: DWP and East Lindsey survey data

  32. AGE OF TARGET GROUP Men Women 16-24 70 50 25-34 210 170 35-44 280 120 45-54 240 250 55-59 140 110 60-64 100 10 ____________________ 1,040 720 Source: East Lindsey survey data

  33. TARGET GROUP – DURATION CLAIMING IB % who would / might like a job Men Women Up to 2 years 52 50 2 – 5 years 25 35 5 – 10 years 21 16 10 years or more 14 18 Source: East Lindsey survey

  34. ASPIRATIONS – Those who would like a job Men (%) Women (%) Would like F-T job only 59 33 P-T job only 38 56 F-T or P-T 3 11 To start now/fairly soon 17 53 Not usual occupation 72 64 Only in this town / local area 69 89 Access to a car 47 46 Source: East Lindsey survey

  35. SOME ALTERNATIVE OCCUPATIONS MEN WOMEN Farm work Shop work Security guard Social work Gardener Childcare Motor trade Carer Driver Office / admin work Office / admin work Hairdresser Dietician Cleaner Computer software Card making Source: East Lindsey survey

  36. EARNINGS AFTER TAX TO COME OFF BENEFIT - Those who would like a job Source: East Lindsey survey

  37. OBSTACLES TO FINDING WORK Men (%) Women (%) Health, disability 96 98 Not enough suitable jobs 15 11 Age 11 11 Difficult to get to work 11 2 Lack of confidence 4 6 Qualifications, skills etc 4 4 Caring responsibilities 4 4 Childcare 4 2 Lack of advice on benefits etc 4 2 NB Individuals could cite more than one obstacle Source: East Lindsey survey

  38. TARGET GROUP – SOME POINTERS • Back to work initiatives will interest only a minority • More recent IB claimants are best bet • Health difficulties need addressing too • Don’t neglect opportunities for part-time working • Offer guidance on financial side • Respond to individual aspirations and preferences

  39. ‘ABSORPTION CAPABILITY’ • East Lindsey is a largely self-contained labour market – 77% of residents in employment work in the district • Employment in the district rose by 1,500 1998-2005 – but slower than the national average • Claimant unemployment fell by nearly 600 1997-2007 – still above regional and national averages but now at historically low levels

  40. MIGRANT WORKERS – East Lindsey NI number registrations by non-UK nationals Total of which, Poland 2005-07 1,590 760 Source: NI Recording System

  41. WAGES: lowest 20% of East Lindsey residents, 2006 £ per hour Men 6.37 Women 5.46 Source: Derived from Annual Survey of Hours and Earnings

  42. FOUR GENERAL CONCLUSIONS • Probably best opportunity to bring IB numbers down in a generation – provided there isn’t a recession • But don’t under-estimate the formidable obstacles to re-employment • Action will need to be sustained – on job creation and with IB claimants • Addressing health issues will be central

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