Part of the Department for Work and Pensions

INFORM – Update 5 Feb 2011

Welfare Reform in the South West

Contents:Work Programme

Get Britain Working

Universal Credit

Incapacity Benefit Reassessment

Regional External Relations Manager’s Message

Welcome to the fifth edition of INFORM. This month sees the start of the introduction phase of the Incapacity Benefit Reassessment process .This process will start nationally on 28 February 2011 for a small numbers of customers and then numbers will increase from April 2011.

In Jobcentre Plus we have been moving through the implementation of our Business Review to support delivery of a more efficient service . Paul Williams has now taken up post ofCustomer Service Director for the Southern Group and we are progressing in joining up our work across the group. Our Districts are working on the transition to their new geographical areas, and the District Managers have now been confirmed. In South West we have :

•West of England and Gloucestershire – Nick Browning•Devon & Cornwall – Michelle Maslen•Wessex ( this incorporates Dorset , Somerset , Swindon & Wiltshire ) – Tim Taylor-Blake

We saw the launch of Work Experience on 24th January, which will support our younger customers and more recently the introduction of Enterprise Clubs, which aim to encourage and support unemployed people who are interested in becoming self employed or setting up their own business. I hope you will help support these measures if you are able.

Phil HarrisonSouth West Regional External Relations Manager

Work Programme

What progress has been made on introducing the Work Programme?

The closing date for bids to be returned is 14 February 2011 andeligibility has been confirmed. The Work Programme is still on scheduleto be implemented nationally by Summer 2011.

What about existing provision ?

In order to ensure that as many people benefit from the Work Programme as quickly as possible, the Government will be phasing out many of the existing programmes of support and replacing them with the Work Programme. Until the Work Programme is implemented, the Government will ensure support is in place. We are currently working with New Deal and Pathway providers to manage the transition of this provision.

What support will customers receive before they are referred to theWork Programme provider ?

Customers will be offered help and support through Jobcentre Plusbefore they are referred on to the Work Programme . This will comprise of a flexible menu of support aimed to respond to the needs of the local labourmarket , and may be different in each area. This includes some of the GetBritain Working measures including access to Work Clubs , Work Togetherand Work Experience.

Jobcentre Plus Advisers will also have the flexibility to respond to the needs of the individual customer and may include agreeing how often they will seethe customer before they are referred to the Work Programme.

How this all fits together is illustrated on the next page.

When will customers be referred to the Mandatory Work Activity ?

Only a small number of customers will bereferred to this provision before they go on to the Work Programme. The aim of this is to help them move closer to the labour market.

This will be contracted provision , with placements lasting up to 4 weeks and providers will be required to deliver for a period of 30 hours per week .

Framework Providers have already been contacted by letter to make them aware ofthis new provision.

Current procurement timeline below :

•Invitation to Tender published – 14/2/11•Provider event in Birmingham – 17/2/11•Bids returned – 28/2/11•Post Tender discussions – 4-8/4/11•Contracts awarded – 11/4/11•Contracts signed – 21/4/11

New Jobcentre Plus Advisory Intervention Regime

Work Choice

Jobcentre Plus Flexible MenuWork Clubs Job Search

New Enterprise Allowance

Volunteering Support Contract

Work Experience

ESF Flexible Fund

IS customers e.g. Lone Parents/ Carers*NOT eligible for Work Programme

JSA customers 18 – 24 yr olds

* Eligible for WP from 9 months

JSA customers 25+* Eligible for WP from 12 months

JSA customers recently moved from Incapacity Benefit

* Eligible for WP from 3 months

All Employment Support Allowance (ESA) customers.*Eligible for WP at any time (Voluntary)

*Eligible for Work Programme (WP) support lasting 2 years

Post Work Programme Support

GET BRITAIN WORKING

Skills

ESA (income related) customers in Work Related Activity Group.* Eligible for WP when fit for work within 3 months

JSA customers with significant disadvantage e.g. YP, NEETs, ex offenders* Eligible for WP from 3 months

Work Programme Eligibility

Customer Group Time of referral Basis for referral

Jobseeker Allowance customers aged 25+

From 12 Months Mandatory

Jobseeker Allowance customers aged 18-24

From 9 Months Mandatory

Jobseeker Allowance customers who have recently moved from Incapacity Benefit

From 3 months Mandatory

Jobseeker Allowance customers facing significant disadvantage

From 3 months Mandatory or Voluntary

All Employment and Support Allowance customers

At any time from Work capability assessment Voluntary

Employment and Support Allowance customers (income based) who are placed in “work related activity group”

When customers are expected to be fit for work in 3 months

Mandatory

Get Britain Working is a range of initiatives that are currently in different stages of development. These initiatives will form part of the Jobcentre Plus flexible menu of support which will be available to customers before they are referred on to the Work Programme. Jobcentre Plus District Managers will be given the flexibility to respond to the needs of the local labour market and will have some choice over which elements to offer.

New Enterprise Allowance

This is being trail-blazed inMerseyside with expectedroll out from April 2011 intargeted areas, with Nationalcoverage in the autumn. NEA will offer a structured route for those wanting to start a business. It will provide access to a rangeof support ,including access to a mentor and grants for those with viable plans to move in to self employment.

Work Experience

This was launched on 24 Jan and will be part of the JCPDistrict Manager’s flexibilities.This support will initially helpyoung people develop theskills needed to secure asustainable job by offering18-21 year olds a period of work experience. JCP willbe working with a range ofemployers to help deliverthese opportunities.

Work Clubs

In SW we now have over 271Work Clubs up and runningacross the region.Work Clubs will provide unemployed people with a place to meet and exchange skills, share experiences, find opportunities, and get support to help them in their return to work.These are available to allcustomers and are run by a range of private, voluntary and public organisations.

Work Together

This is now available fromday one to all customers and offers greater opportunities for them to volunteer in their local communities whilst theyare looking for work. JCP continue to work with a number of organisations including the Prince’s Trust,across the region to ensure we promote all available placements to our customers.

Enterprise ClubsThese will provide unemployed people interested in self employment with a place to meet and exchange skills, make contacts,share experience, receive support and encourage each other to work through their business ideas. These will run in a similar way to Work Clubs and will be locally led with some support from Jobcentre Plus where required. Guidance is now available for any organisation interested in setting up or supporting a local Enterprise Club.

Service AcademiesStill in development - these are expected to be available from August 2011and is likely to be a six week programme which will consist of pre- employment training , work experience placements and a job interview guarantee. This will be delivered in partnership with training providers and employers with JCP sourcing placements and selecting appropriate customers.

Progress towards Get Britain Working

What is the way forward for Universal Credit ?

The key aim for Universal Credit is to make work pay. No one will experience a reduction in benefit following the introduction of Universal Credit in 2013.

It will consist of a basic personal amount with additions for disability, caring, housing costs and children.

There will be a single taper when a customer moves in to work , with a withdrawal rate of 65 %.

Timeline for change:

October 2013 to April 2014 – All new claims for out of worksupport will be issued under Universal Credit.

Customers transition from out of work benefits into work willmove on to Universal Credit if eligible.

April 2014 – No new claims are made to tax credits.

April 2014 to October 2017 – Existing cases will be assessedand the transfer to Universal Credit is aimed to be completeby October 2017

Will there be conditions applied to receivingUniversal Credit ?

The basic principle will be that to receive Universal Credit, applicants will need to agree conditions placedon them, based on personal circumstances. This includes :

•Customers should be looking for work as a condition toreceiving benefit.•Claimant commitment will set out what is required.•There will be 4 conditionality groups : full conditionality,work preparation, keeping in touch with the labour market and no conditionality. •Strengthened conditionality will be supported by a newsystem of financial incentives.

Will there be any sanctions imposed if conditionality is not met ? There will be strong and clear sanctions which will be critical to the new regime working including :

•Failure to actively seek employment will lead to payment stopping for 4 weeks for first failure and 3 monthsfor second failure.•Failure to meet a requirement to prepare for work will mean 100% of payment stopping until the requirementhas been completed

Universal Credit

Incapacity Benefits Reassessment

How are the Incapacity Benefit Re-assessment trials progressing?

To date all initial notifications letters have been issued, outboundtelephone calls made and referrals to Atos Healthcare complete for customers in the the trial areas. ( Burnley & Aberdeen ) .

They are now in the process of conducting both paper scrutiny of claimsand Work Capability Assessment face to face appointments.

The trial areas are currently seeing a balanced mix of allowances and disallowances.

As we want to ensure that the experience gained in the trial areas is sharedwe intend to have a limited introductory phase before we move to full national roll out in April 2011.Introductory phase will start on 28 February 2011.

What does this mean in South West ?

In the South West we will start the process with approximately 151,553 IBcustomers.

February 2011 will start slow , ramping up to full levels from 9 th May.- February – 76 cases selected per week ( 1000 nationally )- Increasing to 686 cases per week from 4th April ( 7077 nationally )- From 9th May it will be 828 every week ( 10900 nationally )

The actual Reassessment activity for the South West is being done inSt Helens Benefit Delivery Centre.

All staff will be undergoing soft skills training to support working with thiscustomer group.

What are the key responses to the firstWork Capability Assessment ( WCA)Review ?

• We are currently reviewing the training of Decision Makers in JCP and have launched a forum to share good practice. We are alsotesting ways of improving communicationbetween Decision Makers and others involved in the WCA process to ensuredecisions are right first time.

• We have already introduced telephone calls to customers during the WCA process to ensure they understand what is happening.

• We will ensure that ATOS has in place “champions “ with additional expertise in mental, cognitive and intellectual conditionsto improve the service to individuals and toprovide opportunities for staff to further develop their skills . This will be in placeby Spring 2011.

•Professor Harrington will now start work on looking in detail at the descriptors for mentalhealth and other fluctuating condition.

Customer group Average duration on Incapacity benefits

Proportion of reassessment population

Aged 35-55 with other physical conditions 7.7 years 18%

Men aged 55-60 8.6 years 9%

Aged 35-55 with muscular-skeletal conditions 7.8 years 9%

Aged under 35 5.7 years 13%

Aged 35-55 with mental health conditions 7.8 years 24%

< 5 years from state pension age 9.7 years 5%

IB Youth and SDA claimants 11.7 years 15%

Over 15 years on incapacity benefits 16 years 7%

Who are our customers ?

Nationally we have undertaken extensive field research with incapacity benefits customers and Jobcentre Plus staff.

Below is a summary of customer categories identified, their average length of time out of work and the proportion of reassessment population each group represents. There are of course some variations in specific geographical areas.

Incapacity Benefits Reassessment

Further information

Produced by Jobcentre Plus, Regional External Relations Team South West

Tell us what you think

If you have any comments regarding this update or indeed would like to raise any issues please contact

Gaynor Clarke on 01823 349514 or by e mail at : gaynor.clarke1@jobcentreplus.gsi.gov.uk.

Please note if you do not wish to receive this update or you would like it forwarded to an alternative address , please let me know.

 

Useful websites :

Right click on link and select “open hyperlink”

The DWP website contains general information about the government’s welfare reform agenda.DWP website They have now added a link to What's new

Direct Gov website contains information about all JocentrePlus Services and the changes which will be happening with regards to customers claiming Incapacity Benefit ( IB/IS Reassessment ) Benefits if you are ill or disabled

If you would like to keep up to date with the development of the Get Britain Working support then please use the following link. Get Britain Working

For more information : Universal Credit: welfare that works - DWP

If you are able to offer Work Experienceor are interested in running an Enterprise Club see links below: Work Experience

Enterprise Clubs