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Transcript of SLAED Employability Group Welfare Reform: Challenges for Employability Partnerships Andrew Noble and...
SLAED Employability Group
Welfare Reform: Challenges for Employability Partnerships
Andrew Noble and Andrew McGuireImprovement Service Thursday 6th June 2013
Introduction
• Welfare Reform- main changes• Welfare Reform- Financial impact• Welfare Reform Employability and economic
development – the evidence base
Welfare Reform- the main changes- timescale
• 2011– Benefits uprated in line with CPI rather than RPI– Local Housing Allowance changes
• 2012– Child Benefit rates frozen for 3 years– Reduction to 70% childcare costs claimed through tax credits– Contributory ESA limited to 1 year– Lone Parents moved from IS to JSA earlier.
• 2013– Universal Credit introduced – Successor arrangements to CTB and Social Fund introduced – Council Tax Reduction
Scheme and Scottish Welfare Fund– New under-occupancy rules in socially rented sector– Benefit Cap introduced– Personal Independence Payment introduced (replacing DLA)– 1% annual uprating of all benefits for 3 years
Welfare Reform- Financial Impact of Welfare Reforms to 2014/15
Benefit Area No. h’holds/indivduals affected
Estimated loss £m p.a.
Incapacity Benefits (1) (3) 144,000 500
Tax Credits 372,000 300
1% uprating (3) n.a. 290
Child Benefit 621,000 225
DLA (1) (2) 55,000 165
Local Housing Allowance 80,000 80
Under occupancy 80,000 50
Non-dependent reductions 28,000 30
Benefit Cap 2600 15
Total 1,660
Welfare Reform- Financial Impact of Welfare Reforms to 2014/15
Benefit Type Average loss per affected household/ individual (£ p.a)
No. Of Households/ Individuals affected per 10,000
Loss per working age adult (£p.a.)
Incapacity Benefit 3,480 410 145
Tax Credits 810 1,600 85
1% Uprating n.a n.a 85
Child Benefit 360 2,660 65
DLA 3,000 160 50
Local Housing Allowance
1,010 340 25
Under occupancy 620 340 15
Non-Dependant reductions
1,130 120 10
Benefit Cap 4,810 10 <5
Total 480
Overall impact of welfare reform on Scotland by 2014/15 by local authority area
Glasgo
w
Invercl
yde
Dundee
West
Dunbartonsh
ire
North Ayrs
hire
North La
narksh
ire
Clackm
annan
shire
East
Ayrshire
Renfre
wshire
South La
narksh
ire
South Ayrs
hire
West
Lothian
Dumfries
and Gall
oway Fife
MidlothianFa
lkirk
Argyll a
nd Bute
East
Lothian
Angus
Highlan
d
Edinburgh
Scottish
Borders
Eilea
n Siar
Perth an
d Kinross
Stirlin
g
Moray
East
Renfre
wshire
Orkney
islan
ds
East
Dunbartonsh
ire
Aberdee
n
Aberdee
nshire
Shetl
and isl
ands
0
50
100
150
200
250
300
Estimated loss £m p.a.
Estimated loss £m p.a.
Overall financial impact of welfare reform on Scotland by 2014/15 by local authority area
Glasgo
w
Invercl
yde
Dundee
West
Dunbartonsh
ire
North Ayrs
hire
North La
narksh
ire
Clackm
annan
shire
East
Ayrshire
Renfre
wshire
South La
narksh
ire
South Ayrs
hire
West
Lothian
Dumfries
and Gall
oway Fife
MidlothianFa
lkirk
Argyll a
nd Bute
East
Lothian
Angus
Highlan
d
Edinburgh
Scottish
Borders
Eilea
n Siar
Perth an
d Kinross
Stirlin
g
Moray
East
Renfre
wshire
Orkney
islan
ds
East
Dunbartonsh
ire
Aberdee
n
Aberdee
nshire
Shetl
and isl
ands
0
100
200
300
400
500
600
700
Loss per working age adult £ p.a
Loss per working age adult £ p.a
The Evidence base• The most up to date baseline data available for work
and health related benefits by age, gender and duration of claim by local authority area
• Labour market activity and inactivity by local authority area
• Levels of under-employment by local authority area• Work Programme performance by local authority area• Some assessment of the impact of DWP’s
conditionality and sanctions policy• Potential approaches to mitigation
Total Number of Job Seeker Allowance Claimants (JSA)by local authority April 2013
Aberdeen City
Angus
Clackmannansh
ire
Dundee City
East Dunbarto
nshire
East Renfre
wshire
Eilean Si
arFif
e
Highland
Midlothian
North Ayrs
hire
Orkney I
slands
Renfrewsh
ire
Shetla
nd Islands
South La
narkshire
West
Dunbartonsh
ire
Scotla
nd0
5,000
10,000
15,000
20,000
25,000
Total JSA Count
Total JSA Count
Total Number of Income Support Claimants by local authority November 2012
Aberdee
n City
Aberdee
nshire
Angus
Argyll a
nd Bute
Clackm
annan
shire
Dumfries
and Gall
oway
Dundee City
East
Ayrshire
East
Dunbartonsh
ire
East
Lothian
East
Renfre
wshire
Edinburgh
, City
of
Eilea
n Siar
Falki
rk Fife
Glasgo
w City
Highlan
d
Invercl
yde
MidlothianMoray
North Ayrs
hire
North La
narksh
ire
Orkney
Islan
ds
Perth an
d Kinross
Renfre
wshire
Scottish
Borders
Shetl
and Isl
ands
South Ayrs
hire
South La
narksh
ire
Stirlin
g
West
Dunbartonsh
ire
West
Lothian
0
5000
10000
15000
20000
25000
Total Income Support benefit payments (Nov 2012)
Total Income Support benefit payments (Nov 2012) Scotland
Total number Employment Support Allowance (ESA) claimants by local authority November 2012
Aberdee
n City
Aberdee
nshire
Angus
Argyll a
nd Bute
Clackm
annan
shire
Dumfries
and Gall
oway
Dundee City
East
Ayrshire
East
Dunbartonsh
ire
East
Lothian
East
Renfre
wshire
Edinburgh
, City
of
Eilea
n Siar
Falki
rk Fife
Glasgo
w City
Highlan
d
Invercl
yde
MidlothianMoray
North Ayrs
hire
North La
narksh
ire
Orkney
Islan
ds
Perth an
d Kinross
Renfre
wshire
Scottish
Borders
Shetl
and Isl
ands
South Ayrs
hire
South La
narksh
ire
Stirlin
g
West
Dunbartonsh
ire
West
Lothian
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
Total ESA Claimants
Total ESA Claimants Scotland
Total number of families in receipt of Tax Credits by local authority 2010/11
Aberdee
n City
Aberdee
nshire
Angus
Argyll a
nd Bute
Clackm
annan
shire
Dumfries
and Gall
oway
Dundee City
East
Ayrshire
East
Dunbartonsh
ire
East
Lothian
East
Renfre
wshire
Edinburgh
, City
of
Eilea
n Siar
Falki
rk Fife
Glasgo
w City
Highlan
d
Invercl
yde
MidlothianMoray
North Ayrs
hire
North La
narksh
ire
Orkney
Islan
ds
Perth an
d Kinross
Renfre
wshire
Scottish
Borders
Shetl
and Isl
ands
South Ayrs
hire
South La
narksh
ire
Stirlin
g
West
Dunbartonsh
ire
West
Lothian
0
10000
20000
30000
40000
50000
60000
70000
Total families in receipt of tax credits (in work and out of work, finalised annual awards 2010/11)
Total families in receipt of tax credits (in work and out of work, fi-nalised annual awards 2010/11)
Number of Housing Benefit claims in Local Authority and the socially rented sector, by local authority, November 2012
Aberdee
n City
Aberdee
nshire
Angus
Argyll a
nd Bute
Clackm
annan
shire
Dumfries
and Gall
oway
Dundee City
East
Ayrshire
East
Dunbartonsh
ire
East
Lothian
East
Renfre
wshire
Edinburgh
, City
of
Eilea
n Siar
Falki
rk Fife
Glasgo
w City
Highlan
d
Invercl
yde
MidlothianMoray
North Ayrs
hire
North La
narksh
ire
Orkney
Islan
ds
Perth an
d Kinross
Renfre
wshire
Scottish
Borders
Shetl
and Isl
ands
South Ayrs
hire
South La
narksh
ire
Stirlin
g
West
Dunbartonsh
ire
West
Lothian
0
10000
20000
30000
40000
50000
60000
70000
80000
No. of HB recip-ients in Social Rented Sector
No. of total HB claimants in LA Housing
Total number of Incapacity Benefit (IB) claimants by Local Authority November 2012
Aberdee
n City
Aberdee
nshire
Angus
Argyll a
nd Bute
Clackm
annan
shire
Dumfries
and Gall
oway
Dundee City
East
Ayrshire
East
Dunbartonsh
ire
East
Lothian
East
Renfre
wshire
Edinburgh
, City
of
Eilea
n Siar
Falki
rk Fife
Glasgo
w City
Highlan
d
Invercl
yde
MidlothianMoray
North Ayrs
hire
North La
narksh
ire
Orkney
Islan
ds
Perth an
d Kinross
Renfre
wshire
Scottish
Borders
Shetl
and Isl
ands
South Ayrs
hire
South La
narksh
ire
Stirlin
g
West
Dunbartonsh
ire
West
Lothian
0
1000
2000
3000
4000
5000
6000
7000
Total IB Benefit Claimants
Total IB Benefit Claimants Scotland
Total Number Incapacity Benefit (IB) and Severe Disablement Allowance claimants by local authority November 2012
Aberdee
n City
Aberdee
nshire
Angus
Argyll a
nd Bute
Clackm
annan
shire
Dumfries
and Gall
oway
Dundee City
East
Ayrshire
East
Dunbartonsh
ire
East
Lothian
East
Renfre
wshire
Edinburgh
, City
of
Eilea
n Siar
Falki
rk Fife
Glasgo
w City
Highlan
d
Invercl
yde
MidlothianMoray
North Ayrs
hire
North La
narksh
ire
Orkney
Islan
ds
Perth an
d Kinross
Renfre
wshire
Scottish
Borders
Shetl
and Isl
ands
South Ayrs
hire
South La
narksh
ire
Stirlin
g
West
Dunbartonsh
ire
West
Lothian
0
500
1000
1500
2000
2500
3000
3500
4000
Total number of IB/SDA benefit claimants
Total number of IB/SDA benefit claimants Scotland
Total number of Working Age Disability Living Allowance Claimants by local authority November 2012
Aberdee
n City
Aberdee
nshire
Angus
Argyll a
nd Bute
Clackm
annan
shire
Dumfries
and Gall
oway
Dundee City
East
Ayrshire
East
Dunbartonsh
ire
East
Lothian
East
Renfre
wshire
Edinburgh
, City
of
Eilea
n Siar
Falki
rk Fife
Glasgo
w City
Highlan
d
Invercl
yde
MidlothianMoray
North Ayrs
hire
North La
narksh
ire
Orkney
Islan
ds
Perth an
d Kinross
Renfre
wshire
Scottish
Borders
Shetl
and Isl
ands
South Ayrs
hire
South La
narksh
ire
Stirlin
g
West
Dunbartonsh
ire
West
Lothian
0
10000
20000
30000
40000
50000
60000
70000
Total no. of Working Age DLA claimants
Total no. of Working Age DLA claimants Scotland
Work Programme Referral, Attachments and Job Outcomes (1st June 2011-31st July 2012)
Aberdeen
CityAngu
s
Clackm
annan
shire
Dundee City
East
Dunbartonsh
ire
East
Renfre
wshire
Eilea
n Siar Fife
Highlan
d
Midloth
ian
North Ayrs
hire
Orkney
Islan
ds
Renfre
wshire
Shetl
and Is
lands
South
Lanark
shire
Wes
t Dunbart
onshire
0
5000
10000
15000
20000
25000
30000
35000
Total Work Programme Job Outcomes
Total Work Programme Attachments
Total Work Programme Referrals
Employment rates for Scottish local authority areas 2012 (Scottish Labour Market Survey 2012)
Aberdee
n City
Aberdee
nshireAngu
s
Argyll a
nd Bute
Clackm
annan
shire
Dumfries
and Gall
oway
Dundee City
East
Ayrshire
East
Dunbartonsh
ire
East
Lothian
East
Renfre
wshire
Edinburgh
, City
of
Eilea
n Siar
Falki
rk Fife
Glasgo
w City
Highlan
d
Invercl
yde
MidlothianMoray
North Ayrs
hire
North La
narksh
ire
Orkney
Islan
ds
Perth an
d Kinross
Renfre
wshire
Scottish
Borders
Shetl
and Isl
ands
South Ayrs
hire
South La
narksh
ire
Stirlin
g
West
Dunbartonsh
ire
West
Lothian
0
10
20
30
40
50
60
70
80
90
Employment Rate % 2012; Scottish Labour Market Survey 2012
Employment Rate % 2012
Economic Inactivity rate by Scottish local authority area 2012(Scottish Labour Market Survey 2012)
Aberdee
n CityAngu
s
Clackm
annan
shire
Dundee City
East
Dunbartonsh
ire
East
Renfre
wshire
Eilea
n Siar Fif
e
Highlan
d
Midlothian
North Ayrs
hire
Orkney
Islan
ds
Renfre
wshire
Shetl
and Isl
ands
South La
narksh
ire
West
Dunbartonsh
ire0
5
10
15
20
25
30
35
Economic Inactivity Rate % 2012
Economic Inactivity Rate % 2012
Underemployment across Scotland 2012proportion of workers who are underemployed
source- Annual Population survey October 11-Sept. 12
Dund
ee C
ity
Shet
land
Isla
nds
Clac
kman
nans
hire
Sout
h Ay
rshi
re
Dum
frie
s and
Gal
low
ay
Renf
rew
shire
Wes
t Dun
bart
onsh
ire
Argy
ll &
But
e
Angu
s
Glas
gow
City
East
Ayr
shire
Scot
Bor
ders
, The
Inve
rcly
de
Pert
h an
d Ki
nros
s
Mid
loth
ian
High
land
Nort
h Ay
rshi
re
East
Loth
ian
Stirli
ng
SCO
TLAN
D
East
Ren
frew
shire
Falk
irk
Edin
burg
h, C
ity o
f
Fife
Aber
deen
shire
Nort
h La
nark
shire
Mor
ay
East
Dun
bart
onsh
ire
Sout
h La
nark
shire
Wes
t Lot
hian
Ork
ney
Islan
ds
Eile
an S
iar (
Wes
tern
Isle
s)
Aber
deen
City
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
13.6%
9.9%
5.1%
Underemployment- summary
• Underemployment increasing across all regions of the UK. • Between 2008 - 2012 the number of underemployed workers
in Scotland increased by 76,000• In 2011 the UK underemployment was high compared to EU• Wide variation in underemployment rates across LA areas. • Almost half of all underemployed people in Scotland are
working part-time in the private sector.• Women are more likely to be underemployed than men
(women more likely to work part-time). • 65% of young males not in full-time education working part-
time report themselves as underemployed.
Conditionality for Universal Credit• Applicants for Universal Credit are required to sign a Claimant
Commitment- a record of the responsibilities the claimant has made in return for receiving Universal Credit
• Claimant Commitment applies to those in work and receiving UC, who are identified as “could work more”, i.e. Those in part time Low paid employment; the under-employed
• Expectation that preparing for and getting a job is the “full time focus” of the UC claimant.
• Claimants not being able to demonstrate this will face a sanction, i.e. cut to their UC.
• This means that people in employment will seek support to develop their skills, access training/ further education and progress in the labour market as result of their Claimant Commitment- further increasing demand for a broad range of employability services
WR: Challenges for Employability Partnerships (1)
• Range of challenges for Employability Partnerships arising from WR (e.g. Potential major increase in demand for Employability services; different mix of clients / needs; etc)
• Resource implications (scale / doing more things / doing different things)?
• Ensuring appropriate linkages to other relevant services (Money Advice, Welfare Rights, etc – incl emerging LSS) whilst avoiding ‘revolving doors’
• WR ‘incentivising work’ is premised on jobs being available. Linkages to demand side / Strengthening integration with wider Economic Development
WR: Challenges for Employability Partnerships (2)
• Reduced incomes within local economies
• Scope to influence focus of next round of EU funding
• Local Govt has major role to play in employability – and also lead role re SOA priorities.
• Where does potential ‘crisis management’ around WR leave prevention / early intervention agenda?
• Do Councils / CPPs have genuinely joined-up approach to Econ Outcomes?
• What more can public sector do re maximising economic impact?
Economic Outcomes Programme
• Working with Councils / partnerships to implementing key messages of ‘Econ Dev Improvement Guide’ in order to maximise economic impact
• Access to Guide and further info on EOP via:- www.improvementservice.org.uk/economicoutcomes
• Wide range of tailored supports available to:-– Individual Councils / Partnerships– Groups of Councils / partnerships– National initiatives
• Linkages to all key Econ Dev Agencies via EOP Prog Board
• But limited resources
Group Discussion
• Update re where Councils are in context of WR Employability challenges
• Emerging issues / themes?
• Are there common areas that would benefit from EOP / WRISP support?