welfare-to-work in the uk
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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 - PowerPoint PPT PresentationTRANSCRIPT
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Welfare-to-work in the UK
Paul Convery
Mike StewartCentre for Economic and Social Inclusion, London
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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
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June 7th 2001 UK General Election
0% 20% 40% 60% 80%
Labour
Conservative
Liberal
Others
Votes
Seats
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Turnout at UK General Elections(1945-2001)
55%60%65%70%75%80%85%90%
1945
50 51 55 59 64 66 70 74-1
74-2
79 83 87 92 97 2001
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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
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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.
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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)
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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'.
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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%
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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)
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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)
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Trends in benefit claims May 1997 May 2000 Reduction in the
number of people claiming
Jobseeker’s Allowance
1.56m 1.07m 490,000 32%
Incapacity Benefit 2.37m 2.26m 110,000 5%
Housing Benefit 4.64m 4.03m 610,000 13%
Lone Parents on Income Support
1.01m 0.91m 100,000 10%
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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
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Transitional Work in the U.K.
Mike Stewart
C.E.S.I.
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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
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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%+
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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
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Developments post 1997
• Employment Zones-Neighbourhood Match
• Social exclusion
• Neighbourhood renewal
• Health, Education,Crime, Environment
• Community jobs?
• March 2001 - Transitional Employment
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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
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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?