1. www.cesi.org.uk Ten challenges for Welfare to Work Paul Convery Centre for Economic & Social Inclusion

2. www.cesi.org.uk Ten challenges for Welfare to Work 1. JSA - less than 20% of benefit population 2. Helping claimants facing multiple barriers 3. Solutions tailored to local needs 4. Greater employer engagement 5. Retention and progression 6. Better-off in-work 7. Earlier intervention 8. Improving provider performance 9. Better co-ordination 10. Individualised support

3. www.cesi.org.uk A lot has changed since 1997  Macro economic stability - jobs growth  "making work pay", Minimum Wage and tax credits;  employability programmes - New Deals - plus practical support such as childcare;  services for those most disadvantaged in the labour market;  modernised delivery - single entry point to benefits and work and private/voluntary sector delivery  education and training

4. www.cesi.org.uk Government targets for next 10 years  a higher percentage employed “than ever before”;  raising the proportion of lone parents in work to 70%;  narrowing the productivity gap with USA, Germany, France and Japan "over the economic cycle"  majority of UK young people in higher or further education;  halving child poverty (eradicating within 20 years)  750,000 adults to improve basic skills (by 2004)  closing the gap in employment rates for ethnic minorities, 50+, disabled, lone parents and in 30 districts with poor labour market position (by 2004).

5. www.cesi.org.uk

7. New Deal 18-24 job entry

8. www.cesi.org.uk New Deal 25+ job entry (% of known leavers)

9. www.cesi.org.uk New Deals need to improve  Less than 40% of entrants get sustained jobs (18-24)  Only 16% get sustained jobs (25+)  ¼ of entrants (18-24) 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  1 in 3 participants are re-entrants (18-24)

10. www.cesi.org.uk Help for those facing severe barriers  Lone parents: childcare costs; tax credits; training grants; minimum income guarantees; IS “run-ons”; self-employment  Disabled people: national network of Job Brokers; intervention at early stages of sickness and disability (job retention and rehabilitation pilots); re-designed and re-funded Supported Employment Programme (“WORKSTEP”)  Older long term unemployed: New Deal 50+ and New Deal 25+ better funded & more flexible  Initiatives for rough sleepers, drug misuers, ex prisoners

11. www.cesi.org.uk

12. Job retention, advancement and wage gain Programmes & agencies focussed towards : – Investing in supplier capability plus increased competition and user choice – Shift in services towards post-placement – Standards driven by employer demand, not by public sector supply - with "stretched" outcome goals – Work orientated services – Focussed and achievable job goals

13. www.cesi.org.uk New delivery models and agencies  “Jobcentre Plus”: for all working age claimants – PA service; customised training; ICT based services (vacancies, in-work benefit calculations, “Homes Direct”)  Employment Zones: Personal Job Account; concentration on high unemployment areas  Action Teams: outreach and flexibility  Employer engagement: SSCs, Employer Coalitions  Local Strategic Partnerships

14. www.cesi.org.uk New Deal “next phase”  StepUP - guaranteed jobs programme (ILMs)  progress2work for drug misusers  Adviser Discretion Fund (£300 budget)  “Ambition” programmes  Tailored Pathways – modular: –short work focused training –flexible packages of work experience, training and subsidised employment (“blending and picking” options)  Action Teams

15. www.cesi.org.uk Ten challenges for Welfare to Work 1. JSA - less than 20% of benefit population 2. Helping claimants facing multiple barriers 3. Solutions tailored to local needs 4. Greater employer engagement 5. Retention and progression 6. Better-off in-work 7. Earlier intervention 8. Improving provider performance 9. Better co-ordination 10. Individualised support