Get Britain Working: Employment Support Reform Eamonn Davern Head Jobcentre Plus International Relations Gdansk January 25 th 2012.

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Presentation transcript:

Get Britain Working: Employment Support Reform Eamonn Davern Head Jobcentre Plus International Relations Gdansk January 25 th 2012

The problem most who come onto benefit leave quickly – over half within 3 months… …but some get stuck and need more support to avoid long term unemployment Proposition… it costs a lot to keep people on benefit – could we spend some of that to help people back to work?

The Work Programme Biggest of its kind the UK has ever seen For those at risk of long term unemployment 2.4 million expected referrals Replacing much of the complex range of poor value existing provision Flexibility, results focus, partnership working

How will the Work Programme be better? Longer to work with customers Black box (but transparent, with safeguards) Integrated – All JSA and ESA customers can access More sophisticated payment model

Payment model *Incentive payments

Customer GroupsTime for referral JSA customers aged 25+ JSA customers aged JSA ex-IB JSA seriously disadvantaged in the labour market All ESA customers ESA (income related) customers who are placed in the Work Related Activity Group From 12 months From 9 months From 3 months Voluntary at any time When customers are expected to be fit for work within 3 months Universal Programme

Differential pricing: Maximum payments

Avoid paying for ‘do nothing’ outcomes Some would find jobs without help Will only pay for a job outcome for the unemployed after 6 months in work Providers have to beat ‘do nothing’ outcomes to keep contracts

10. Paying for results out of benefit savings 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Months Additional saving from Work Programme Cohort of customers on benefit Remaining cost of paying benefits Saving from normal off-flow without intervention

Prime providers At least 2 per contract package area Will compete for market share 7 year contract – long term relationships Greatest ever freedom and financial incentives to succeed

In conclusion Real innovation Powerful incentive to help people into work With other welfare reforms real chance of success