Transcript Slide 1
Ten Years of Activation Policies in the UK and Next Steps in Welfare Reform Joanna Kerrison Economy and Labour Market Division UK Department for Work and Pensions We have a historically high employment rate… 76.0 74.0 72.0 70.0 68.0 66.0 64.0 1979 2 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 Numbers on key out of work benefits falling… Unemployment benefits Incapacity benefits Lone parents 3,500 3,000 Thousands 2,500 2,000 1,500 1,000 500 0 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 3 Achievements since 1997 •One million fewer on key out of work benefits since 1997, and employment up by 3.0 million. •Employment rate up 1.7% to 74.4%. Employment level up in every region of the UK. •Claimant unemployment rate, at 2.9% is down 2.5% from 1997. •Long-term claimant unemployment has fallen by over threequarters •Youth claimant unemployment has fallen by a quarter. •*All figures have been taken from the LABOUR MARKET STATISTICS BRIEF October 2008 4 How have we got there? Stable economic growth and an active labour market policy: • Mandatory New Deal programmes for jobseekers • Voluntary New Deals for lone parents and disabled people • Making work pay, through tax credits and a minimum wage • Jobcentre Plus, a single gateway for benefits and employment • Involving the private and voluntary sectors in delivery • Mandatory work focused interviews (WFIs) for lone parents • WFIs plus Pathways for new claimants of Incapacity Benefits 5 Our long term vision: 80% employment rate That means: •1 million fewer people on incapacity benefits by 2015 • 300,000 more lone parents in work • 1 million more older people in work • Greater focus on other disadvantaged groups including ethnic minorities and those in disadvantaged areas. • Creating Local Employment Partnerships where employers commit to make more of their jobs available to people disadvantaged in the jobs market: we reduce the cost and risk 6 Taking forward welfare reform • Public consultation on the future of welfare reform • “No one written off: reforming welfare to reward responsibility” • Green Paper Published July 2008 7 Three key principles for reform… Three principles underpin the Green Paper proposals Capability - helping people stay in and return to work Control - giving disabled people choice and control over services 8 Contribution modernising the benefit system Kay Green Paper proposals 1) An obligation to work • Piloting `work for benefit’; • New regime for problem drug users; • Stronger sanctions regime; • Improving people’s work skills. 9 Key Green Paper proposals 2) No-one written off • Employment and Support Allowance – new customer conditionality; • Migration of Incapacity Benefit stock, plus conditionality; • More support for people with severe disabilities to help them get and stay in work . 10 Key Green Paper proposals 3) Tackling child poverty • Partner conditionality • Full child maintenance disregard • Strengthening child maintenance powers; • Joint birth registration 11 Key Green Paper proposals 4) Benefit Reform • Abolition of Income Support: moving lone parents with younger children and carers onto Jobseeker’s Allowance, but no change to conditionality; • Reform of: Industrial Injuries Benefits, Bereavement Benefits and Social Fund. 12 Key Green Paper proposals 5) Devolution of power • Harnessing the innovation of the private and voluntary sector; • Implementing right to control budgets for disabled people. 13