Transcript No Slide Title

NAWRA
Glasgow September 2004
Incapacity Benefit Pilots
Alison Murray
The Pilot(s)
•
•
•
•
Pathways to Work
Work Focussed Interviews
Working Neighbourhoods
Bridgend, Renfrewshire, Derbyshire,
Somerset, Essex, E Lancashire,
Gateshead
Research
• Incapacity Benefit Pilots in
collaboration with the Policy
Studies Institute, National Centre
for Social Research and the
Institute of Fiscal Studies .
Researchers. Roy Sainsbury,
Anne Corden. Katharine Nice.
Funder - Department for Work and
Pensions. Duration - September
2003 to March 2007.
Why IB?
• 2.7 million working age on incapacity
benefit (1 in 13 adults)
• 1 million people sick each week
• 3000 remain off for 6 months and
• 80% not work in next 5 years
What makes us so sick?
• 35% mental and behavioural disorders
• 16% Other conditions or not specified
• 22% musculo-skeletal and connective
tissue
• 11% circulatory and respiratory diseases
• 10% nervous system
• 6% injury and poisoning
New Claimants
•
•
•
•
•
5 or more WFI’s
Compulsion
PCA (12 weeks)
Health Management
Back to Work
• Initial Work
focussed
interview
• Skilled Personal
Advisers
• Action Plans
• CMP’s
• Financial
Incentives
Work-focussed Interviews
•
•
•
•
•
•
•
Schedule 2
Reg 5 (1)
Reg 6 (1)
Reg 7 (1)
Reg 8.
Reg 9.(1)
Reg 10 (1)
Specified benefit
The interview
Waiver
Deferment
Exemption
Taking Part
Failure to take part
Relevant Decision
• Regulation 11 - matters to be taken into
account in determining good cause.
• Regulation 12 provides an appeal right
to an appeal tribunal under section 12 of
the Social Security Act 1998 (c. 14).
Benefit Reductions
•
•
•
•
•
•
Whole reduction ceases
New facts (within one month)
Special circumstances (longer)
Relevant decision can be revised
Move out of WFI area (no reduction)
Turn 60 (no reduction)
Working Neighbourhoods
•
•
•
•
•
On specified benefit
13 weekly interviews
5 interviews for claimants
Up to 8 interviews for partners
Waiver, defer or exemption
Consequences
• As if they never claimed
• terminate benefit the next week
• benefit reduction for each relevant
decision
– 20% of personal allowance of 25 year old
• Good Cause
• Appeal Rights
• Employment Zone Programmes
• Maria Eagle: We will be publishing
reports although the full and final impact
assessment will not be available until
early 2007. An interim assessment of
the impact of the incapacity benefit
pilots will also be available in summer
2005. we will be assessing direct
feedback from those responsible for,
and participating in, the pilots, and apply
appropriate lessons more widely.
• Maria Eagle there will be approximately
14,000 new claims for incapacity
benefits during 2003–04, and 65,000 1
during 2004–05. In addition, all the pilot
provision is available to existing
incapacity benefit recipients in the pilot
areas, numbering approximately
193,000. Their participation is currently
on a voluntary basis.
• Maria Eagle One of the purposes there
is scope for savings...potential to
generate savings which will outweigh
the projected pilot costs of
approximately £40 million a year.
However there has been limited
previous success in this area on which
to make a firm assessment of the
financial implications.
• The primary purpose to achieve their
aspirations to return to employment and
to avoid long-term incapacity.
Running Costs
• latest estimates for the running costs from 2004 to 2006 are as
outlined:
2003–04
2004–05
2005–06
Personal advisers
3,160,150
Return to Work Credit
9,038,400
625,895
3,020,839
248,560
5,594,400
Condition Management 887,500
8,202,00
8,651,211
Other costs
19,599,450
3,577242
22,733,550
• Under Pilot IB reforms Schlumberger have
reduced the average time taken to carry out
medical examinations from 52 days to 30
days, which has contributed to an annual cost
saving of £21 million.
• On the basis of evidence from Incapacity
Benefit reform pilots, the Department
consider it is possible to reduce this further to
15 days, which would result in further
financial savings as ineligible customers are
identified quicker.
Customer Quotes
• “Friends have remarked on the change
in me since the programme. My
confidence has really improved”.
• “I would recommend this course to
anyone, it really boosted my
confidence”.
• “It gave me an idea of what I would like
to do. Exercises were informative and
fun”.
Other Resources
•
•
•
•
•
SI No 2004 959
SI No 2003 No 2439
Memo DMG Vol 1 02/04
Memo DMG Vol 1 07/03
Notes for GP’s
www.dwp.gov.uk/medical/hotopics/pathway
s.asp