Part of the Department for Work and Pensions INFORM Welfare Reform in the South West Update1 – September 2010 Contents: Work Programme Get Britain Working 21 st Century Welfare Incapacity Benefit Reassessment Regional External Relations Manager’s Message I am delighted to be writing the foreword of the first edition of INFORM. I’m sure you will have been reading about some of the changes that have been announced by the Government with regards to Welfare Reform. Many of these proposals will impact on Jobcentre Plus and the help and support we offer our customers. As key stakeholders we acknowledge the importance of keeping you informed of these changes which will be taking place over the coming year. For that reason we will be producing a monthly update covering these Welfare Reform changes, including the introduction of the Work Programme, the Getting Britain Working initiatives, the proposals to change the benefits system in the paper 21st Century Welfare and the reassessment of all customers currently receiving Incapacity benefits. I hope you find this update useful and information. Phil Harrison South West Regional External Relations Manager

What is it? The Government will be implementing the new Work Programme by the Summer of Support will be provided for everyone who finds themselves out of work regardless of the benefit they claim. The Work Programme will be far more personalised than existing programmes, with the support being determined by front line providers based on the needs of individuals. To ensure that as many of our customers as possible benefit from the Work Programme as quickly as possible our existing programmes will be folded into the Work Programme. However until the Work Programme is implemented transitional support arrangements will be implemented. DWP will offer stronger incentives for providers to work with the harder to help and for the first time, pay providers out of the additional benefits that are saved as a result of moving customers into work. Further information will be available as the design and implementation of the Work Programme progresses. What will happen to existing programmes? The Flexible New Deal will be phased out and replaced by The Work Programme summer of next year. Pathways to Work will be phased out and the support it offers folded in to the new Work Programme in the first half of next year. Elements of the Young Person’s Guarantee will continue in the transition to the new Work Programme. How will the new programme be delivered ? The Work Programme will be delivered by private providers contracted by DWP. The Work Programme will provide a wide range of new contracting opportunities. In particular, DWP has published details of a new commercial arrangement, The Work Programme Framework. This will provide DWP with the flexibility to meet future needs efficiently and quickly and call on services of providers who have been selected on to the framework. Providers interested in delivering the Work Programme should be referred to : DWP site /supplying The Work Programme

Get Britain Working is built around four linked changes : A new integrated welfare to work initiative, The Work Programme, and four supplementary programmes : - Work for Yourself - Work Together - Work Clubs - Youth Action for Work Work for Yourself Offers unemployed would-be Entrepreneurs access to business mentors/coaches and start up loans Financial support for for new business start ups Still in development Work Together Promoting Volunteering opportunities Pooling of voluntary opportunities on a data base Encouraging Jobseekers to Use volunteering as a way of gaining work experience. Still in development Work Clubs Community led organisations to support jobseekers return to work. Incorporates sharing of experiences, skills exchange and making contacts. Some Jobcentre Plus Support Still in development Youth Action for Work To include: Work Experience for young people Additional apprenticeships (including pre-apprenticeships to fill literacy/numeracy gaps) Additional Further Education college places Technical Schools in 12 largest urban areas New university places Still in development Service Academies Proposals are still been developed, but it is expected these will offer customers pre-employment training and work placements. Get Britain Working

21 st Century Welfare Background On 30 July the Government published “21 st Century Welfare “which outlines some ideas to reform the benefit system. The paper argues that the current benefit system is overly complex and does not create enough incentives for people to choose work instead of benefits. Simplification of the system and setting the right financial incentives are key to removing the barriers that are trapping people in poverty. The Government is inviting consultation on it’s ideas, and views are welcome from government departments, external stakeholders and members of the public to help design a system that tackles the root causes of poverty. No decisions have been made yet, and stakeholders will be kept Informed of any developments. Any changes to benefits will follow public consultation and legislation. Can you take part in the consultation ? Anyone can take part in the consultation exercise via the DWP website Key options presented in 21 st Century Welfare are : A single integrated Universal Credit, which could bring together out of work benefits, Tax Credits and payments for needs such as housing costs; A Single Unified Taper which would ensure that we look at all of someone’s benefit entitlement When we look at their earnings; and Possible changes to the conditionality rules for people getting benefit. Other options proposed by external organisations, such as a Single Working Age Benefit, a family allowance and a negative income tax model are also being considered. Consultation period is from 30 July until 1 October 2010

Incapacity Benefits Reassessment What are the changes for customers currently on Incapacity Benefit ? All existing customers receiving incapacity benefit are to have their claims reassessed. As part of this reassessment the majority if customers will undergo a Work Capability Assessment (WCA) to determine their future benefit entitlement. Those assessed fully capable of work can make a claim for Jobseekers Allowance (JSA) and those who cannot work or have limited capability of Work will move to Employment & Support Allowance (ESA) How will the changes benefit our customers ? There are over two and a half million people on incapacity benefits. We know that many of them, with the right support, could and indeed want to work but the current system doesn’t give them that option. We want to focus on what people can do, rather than on what they cannot do and believe that appropriate work is good for most people’s physical and mental health and well being. People who have been on benefits for a number of years are among those who need the most support. Moving people on to ESA and JSA means they get the right help and support to find suitable work. The WCA will identify the most severely disabled people and those with the most severe health conditions, and place them in the ESA Support Group. They will not have to take up any work-related support, unless they so wish. Those for whom we assess as eventual return to work is realistic will be placed in the ESA work-related activity group. Existing route ways for support will continue until the Work Programme is in place. What will the process be ? The WCA will be used to reassess over 1.5 million existing claims over 3 years. Customers will then either transfer to ESA or be invited to claim JSA. We expect 20% of existing IB customers to subsequently submit new JSA claims. Initial contact with customers will be by letter and a telephone call. The WCA will be carried out by an approved healthcare professional with reassessment decisions given to Customers from Jobcentre Plus. What are the timescales ? The process will be trialled in parts of Cumbria & Lancashire and parts of the Highlands, Islands, Clyde Coast &Grampian from mid October The first customers in the trial areas are expected to attend Jobcentre interviews from late November onwards. In February 2011 the process will be extended nationwide.

Further information Produced by Jobcentre Plus, Regional External Relations Team South West Tell us what you think If you have any comments regarding this update or indeed would like to raise any issues please contact Gaynor Clarke on or by e mail at : Please note if you do not wish to receive this update or you would like it forwarded to an alternative address, please let me know. Useful websites / links – Useful websites : Right click on link to open hyperlink The DWP website contains general information about the government’s welfare reform agenda. DWP website Direct Gov contains information about all JocentrePlus Services and the changes which will be happening with regards to customers claiming Incapacity Benefit. Direct Gov website If you are interested in making a contribution to the consultation regarding the reform of the benefits system, the links below will help : 21 st Century Welfare Consultation paper 21 st Century Welfare comment on line