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 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 of Customer 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 24 th 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 Harrison South 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 and eligibility has been confirmed. The Work Programme is still on schedule to be implemented nationally by Summer 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 the Work Programme provider ? Customers will be offered help and support through Jobcentre Plus before 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 labour market, and may be different in each area. This includes some of the Get Britain Working measures including access to Work Clubs, Work Together and 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 see the 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 be referred 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 of this 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 Menu Work ClubsJob 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 GroupTime of referralBasis for referral Jobseeker Allowance customers aged 25+ From 12 MonthsMandatory Jobseeker Allowance customers aged From 9 MonthsMandatory Jobseeker Allowance customers who have recently moved from Incapacity Benefit From 3 monthsMandatory Jobseeker Allowance customers facing significant disadvantage From 3 monthsMandatory or Voluntary All Employment and Support Allowance customers At any time from Work capability assessmentVoluntary 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 in Merseyside with expected roll out from April 2011 in targeted areas, with National coverage in the autumn. NEA will offer a structured route for those wanting to start a business. It will provide access to a range of 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 JCP District Manager’s flexibilities. This support will initially help young people develop the skills needed to secure a sustainable job by offering year olds a period of work experience. JCP will be working with a range of employers to help deliver these opportunities. Work Clubs In SW we now have over 271 Work Clubs up and running across 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 all customers and are run by a range of private, voluntary and public organisations. Work Together This is now available from day one to all customers and offers greater opportunities for them to volunteer in their local communities whilst they are 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 Clubs These 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.Guidance Service Academies Still 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 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 work support will be issued under Universal Credit. Customers transition from out of work benefits into work will move 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 assessed and the transfer to Universal Credit is aimed to be complete by October 2017 Will there be conditions applied to receiving Universal Credit ? The basic principle will be that to receive Universal Credit, applicants will need to agree conditions placed on them, based on personal circumstances. This includes : Customers should be looking for work as a condition to receiving 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 new system 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 months for second failure. Failure to meet a requirement to prepare for work will mean 100% of payment stopping until the requirement has 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, outbound telephone 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 claims and 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 shared we intend to have a limited introductory phase before we move to full national roll out in April Introductory phase will start on 28 February What does this mean in South West ? In the South West we will start the process with approximately 151,553 IB customers. 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 4 th April ( 7077 nationally ) -From 9 th May it will be 828 every week ( nationally ) The actual Reassessment activity for the South West is being done in St Helens Benefit Delivery Centre. All staff will be undergoing soft skills training to support working with this customer group. What are the key responses to the first Work 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 also testing ways of improving communication between Decision Makers and others involved in the WCA process to ensure decisions 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 conditions to improve the service to individuals and to provide opportunities for staff to further develop their skills. This will be in place by Spring Professor Harrington will now start work on looking in detail at the descriptors for mental health and other fluctuating condition.

Customer group Average duration on Incapacity benefits Proportion of reassessment population Aged with other physical conditions7.7 years18% Men aged years9% Aged with muscular-skeletal conditions7.8 years9% Aged under years13% Aged with mental health conditions7.8 years24% < 5 years from state pension age9.7 years5% IB Youth and SDA claimants11.7 years15% Over 15 years on incapacity benefits16 years7% 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 or by e mail at : 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 newWhat's new  Direct Gov website 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 disabledBenefits 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 Get Britain Working  For more information : Universal Credit: welfare that works - DWPUniversal Credit: welfare that works - DWP  If you are able to offer Work Experience or are interested in running an Enterprise Club see links below: Work Experience Enterprise Clubs