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The UK labour market and welfare reform Adam Sharples Director General for Employment Department for Work and Pensions.

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Presentation on theme: "The UK labour market and welfare reform Adam Sharples Director General for Employment Department for Work and Pensions."— Presentation transcript:

1 The UK labour market and welfare reform Adam Sharples Director General for Employment Department for Work and Pensions

2 Department for Work and Pensions 2 Unemployment is on a plateau…

3 Department for Work and Pensions 3 …but numbers on other benefits are falling

4 Department for Work and Pensions 4 Number of lone parents on JSA (000s) Phase 1Phase 2Phase 3 …some moving on to JSA

5 Department for Work and Pensions 5 Long-term unemployment may now have peaked… Long-term (1 year plus) unemployed

6 Department for Work and Pensions 6 Source: ONS and employment is rising… Up by 380k in the past year

7 Department for Work and Pensions 7 Rolling year-on-year change in public and private sector employment (000s) Especially in the private sector…

8 Department for Work and Pensions 8 With growth in most sectors - except construction and finance… Source: Labour Force Survey. The headline ONS data does not break down figures by sector so this uses respondents’ own assessment. Growth in private sector employment by sector 2010-2011 (000s)

9 Department for Work and Pensions 9 …but there are long durations on inactive benefits Duration on out-of work benefits in GB (000s)

10 Department for Work and Pensions 10 Where now? Some reflections… Work programme –Fundamental shift in welfare to work programmes –New opportunities for partnership

11 Department for Work and Pensions 11 Work Programme - payment by results Payment (£) Time on Programme Start on Programme Job Start 26 weeks 52 weeks Attachment Fee £400 Job outcome payment £1,200 Sustainment payments £215 every 4 weeks

12 Department for Work and Pensions 12 Where now? Some reflections Work programme –Fundamental shift in welfare to work programmes –New opportunities for partnership Universal credit –Simplifies journey into work –Improves work incentives Particularly in short hours jobs

13 Department for Work and Pensions 13 Universal Credit – simplifies journey into work Replaces: Income related Jobseeker’s Allowance Income related Employment and Support Allowance Income Support (including SMI) Social Fund (budgeting loan elements) Jobcentre Plus Administered by: Child Tax Credits Working Tax Credits Housing Benefit Revenue and Customs Local authorities

14 Department for Work and Pensions 14 Universal Credit - improves work incentives Couple with two children £0 £50 £100 £150 £200 £250 £300 £350 £400 £450 £500 01020304050 Customer hours worked Weekly Net income Current systemUniversal Credit

15 Department for Work and Pensions 15 Where now? Some reflections Work programme –Fundamental shift in welfare to work programmes –New opportunities for partnership Universal credit –Simplifies journey into work –Improves work incentives Particularly in short hours jobs Jobcentre Plus –Remains prime source of employment support –New flexibility

16 Department for Work and Pensions 16 The UK labour market and welfare reform Adam Sharples Director General for Employment Department for Work and Pensions

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