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Welfare-to-work in the UK

Welfare-to-work in the UK. Paul Convery Mike Stewart Centre for Economic and Social Inclusion, London. Social justice in Blair’s 2 nd term: main goals. Economic Full employment across all regions Higher productivity Stable growth Social Sustainable neighbourhoods

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Welfare-to-work in the UK

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  1. Welfare-to-work in the UK Paul Convery Mike Stewart Centre for Economic and Social Inclusion, London

  2. Social justice in Blair’s 2nd term: main goals Economic • Full employment across all regions • Higher productivity • Stable growth Social • Sustainable neighbourhoods • Eliminate child poverty by 2020 • Family stability

  3. New policies in a full employment economy • Not solving mass unemployment any longer • focus on harder to help populations • conditionality • aiming for retention and progression • employers: labour market blockages • geographical concentration

  4. Strategy since 1997 • bridge the gap between out-of-work and in-work incomes; • specific programmes to bring target groups of non-employed people closer to the labour market; • improve employability of non-working population to compete for work effectively; • concentrate on areas of high unemployment; • improve the effectiveness of Government agencies and subcontractors; • strengthening rights at work.

  5. New Deals (1997-2001) New Deal for Lone Parents (£110m) New Deal for Young People (£970m) New Deal 25+ (£220m) New Deal for Disabled People (£40m) New Deal for Partners (£20m) New Deal 50plus (£20m)

  6. New Deal 18-24 since 1998 628,500 entrants (of which 72% male; 12% disabled; 14% ethnic minority) Leavers • 39% to sustained, unsubsidised jobs • 11% transferred to other benefits • 30% left for 'unknown reasons‘ • 20% left to 'other known destinations'.

  7. New Deal 25+ since 1998 358,600 entrants (of which 84% male, 21% disabled; 27% aged 50+) Leavers • Sustained unsubsidised jobs: 15% • Other benefits: 9% • Other known destination: 5% • Unknown destination: 7% • Return to JSA: 40%

  8. New Deal for Lone parents Attended initial interview: 212,490 Agreements to proceed to New Deal: 188,500 Total job entry: 77,140 (41% of agreements)

  9. New Deals need to improve • Less than 40% of all entrants get sustained jobs (18-24) • Only 15% get sustained jobs (25+) • ¼ of entrants 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 • 27% of current participants are re-entrants (18-24)

  10. Trends in benefit claims

  11. Welfare to work: new priorities • higher performance; • a “flexible and efficient” system – “Jobcentre Plus” • harder to help: lone parents, sickness & disability benefit claimants, adult long term unemployed, ex-offenders, drug misusers • identification and intensive support, basic skills • retention and progression • focus on employer needs (specific and generic) • sectors – retail, construction, IT • promoting diversity • disadvantaged neighbourhoods

  12. Transitional Work in the U.K. Mike Stewart C.E.S.I.

  13. Origins • 1979 ‘Labour isn’t working’ - 1million • First recession of the 80’s - 3million • Community Programme • Wage plus community benefit • No training and poor job outcomes • Participants liked it

  14. Origins • Glasgow mid 80’s - massive long term structural unemployment • Wise group • Intermediate Labour Market • Mainly 25+ and male • Wage+training+support+jobsearch • High job outcome rate 60%+

  15. Developments to 1997 • Wise group model • Glasgow Works model • Report-Regeneration Through Work • Other industrial cities Liverpool, Nottingham, Manchester, Newcastle,Sheffield, Hull • Franchising of the models

  16. Developments post 1997 • Employment Zones-Neighbourhood Match • Social exclusion • Neighbourhood renewal • Health, Education,Crime, Environment • Community jobs? • March 2001 - Transitional Employment

  17. Current position - 2000 research • 5,500 jobs – 9,000 throughput per year • Clustered in large industrial cities • Average Gross cost per person £14,000 • 70% are 18-24 • 20-30% drop out rate • Outcomes average c50% into jobs • 90% in work longer then six months • £1500 p.a. earnings higher then other programmes

  18. Key Issues • Cost - is it value for money? • Is it make work or real work? • Bottom up or top down? • Sustaining job outcomes for the very hardest to reach. • Employment of last resort? • Does it work better then time limits?

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