LEEDS 20 th Oct 2012 Disability, Employment and Welfare Reform.
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Transcript of LEEDS 20 th Oct 2012 Disability, Employment and Welfare Reform.
![Page 1: LEEDS 20 th Oct 2012 Disability, Employment and Welfare Reform.](https://reader036.fdocuments.net/reader036/viewer/2022062422/56649ead5503460f94bb5031/html5/thumbnails/1.jpg)
LEEDS20th Oct 2012
Disability, Employment and Welfare Reform
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DisabilityAim is to• Describe the recent performance of UK
welfare system• Discuss the model of welfare to work for
UK • Discuss disability and employment and
impact of ESA and WCA • Discuss future directions
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Performance of the Welfare System • Pre-recession period saw the slowest rise in
welfare spending since WWII as falling roles funded increased generosity
• UK has low welfare reliance among working age compared to other countries – lower than US apart from maternity benefits!
• Steady decline in welfare reliance in UK – pre-recession and very small rise during recession (compared to previous ones)
• However, ageing population creates a large fiscal challenge and more employment helps
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Welfare Spending – Out of Control?
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5 5
Proportion of Working Age Population Reliant on Welfare Benefits OECD 2004
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Welfare reliance• Over the business cycle welfare reliance
decreased
Source: Gregg Review 2009 - updated
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Disability Welfare Roles • Disability welfare roles for those out of work
rose sharply fell from 1979 to 1995• Rise reflected-
– Increased survival of seriously ill/closure of large institutions/ growing awareness of mental health
– Hidden unemployment – claimant/gmt – Hardening of employer attitudes to
employing those with impairments affecting work
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Disability Welfare Roles • Disability related welfare has a cyclical inflow
with persistence relative to unemployment • exit rates not noticeably cyclical• 1/3 of new claims still live after 2 years, 1/5 by
5 years• Long durations mean it takes 15+ years for full
effects to be visible• Disability welfare roles fell slowly during the
recovery – due to continued hangover from early 1990s and before
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Recession and the Cycle of new claims - currently stable at 270,000
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Rising numbers of Long-duration claims
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Incapacity to ESA • Two Clear Strategies1.Reduce eligibility
- WCA testing to reduce inflow- re-testing of existing stock- limit contributory ESA for WRAG group
ESA has been running for 3 years for new claims – overlap with recession – inflows up and claim survival has fallen by 10% at 6 moths
Net effect very small so far – but will remove 0.5m – through re-testing and time limits
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Welfare reliance• Over the business cycle welfare reliance
decreased
Source: Gregg Review 2009 - updated
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WCA • WCA test is being implemented in an iterative
process – change the rules - out cry - change the rules…… - inappropriate for vulnerable groups
• No tracking of claimants leaving disability benefits means we don’t know what is happening to those losing access – potential for worsening health conditions, acute deprivation etc
• WCA test creating huge resentment among claimants and risks undermining WRAG process – appeals resulting in low flows into WP, likelihood of less positive engagement with providers
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Incapacity to ESA 2. New engagement model designed to deliver
services, support to disabled people on benefits to move them into work on their terms – with generous financial incentives for providers. Participants who agree to next steps would be required to follow them through
• Expected to take 2 years but for some it could be up to 5.
• Disqualified, especially the contributory group will not be supported into work
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Work
No Conditionality Group
Work Related Activity Group
Full Support
Work Ready Group
Self-help 0-3
months
Directed Jobsearch 3-6 months
Fast track
Destination based on
Client Group
WFIs
Action Plans
Work Related Activity
Time to Jobsearch is variable
Work Programme
Supported Jobsearch 6 – 9
months
15
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Alternative Thinking Focus on employmentRetention with existing employer- Treat like Maternity leave – Right to return (1 to 2
years), right to request part-time work and other flexibilities/workplace support (also managed reirement)
- Incentivise/require employers to deliver rehabilitation in sick leave period (say after 3 months)
- Financial penalties for redundancy when on sick leave – rewards for returning staff
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Alternative Thinking Return to Work- Increase financial rewards under Work
Programme and design in incentives against parking
- Appeal to CSR to build long-term relationships between WtW providers and employers
- Multi-agency work around those with multiple needs – ACE pilots disappointing