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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
2 We have a historically high employment rate…
3 Numbers on key out of work benefits falling…
4 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 three- quarters Youth claimant unemployment has fallen by a quarter. *All figures have been taken from the LABOUR MARKET STATISTICS BRIEF October 2008
5 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 How have we got there?
6 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
7 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
8 Three key principles for reform… Capability - helping people stay in and return to work Control - giving disabled people choice and control over services Contribution - modernising the benefit system Three principles underpin the Green Paper proposals
9 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.
10 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. Key Green Paper proposals
11 3) Tackling child poverty Partner conditionality Full child maintenance disregard Strengthening child maintenance powers; Joint birth registration Key Green Paper proposals
12 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. Key Green Paper proposals
13 5) Devolution of power Harnessing the innovation of the private and voluntary sector; Implementing right to control budgets for disabled people. Key Green Paper proposals
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