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Ten challenges for Welfare to Work

Ten challenges for Welfare to Work. Paul Convery Centre for Economic & Social Inclusion. Ten challenges for Welfare to Work. JSA - less than 20% of benefit population Helping claimants facing multiple barriers Solutions tailored to local needs Greater employer engagement

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Ten challenges for Welfare to Work

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  1. Ten challenges for Welfare to Work Paul Convery Centre for Economic & Social Inclusion

  2. Ten challenges for Welfare to Work • JSA - less than 20% of benefit population • Helping claimants facing multiple barriers • Solutions tailored to local needs • Greater employer engagement • Retention and progression • Better-off in-work • Earlier intervention • Improving provider performance • Better co-ordination • Individualised support

  3. 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

  4. 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).

  5. New Deal 18-24 job entry

  6. New Deal 25+ job entry (% of known leavers)

  7. 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)

  8. 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

  9. 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

  10. 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

  11. 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

  12. Ten challenges for Welfare to Work • JSA - less than 20% of benefit population • Helping claimants facing multiple barriers • Solutions tailored to local needs • Greater employer engagement • Retention and progression • Better-off in-work • Earlier intervention • Improving provider performance • Better co-ordination • Individualised support

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