Select Committee on Work and Pensions Fourth Report


LIST OF CONCLUSIONS AND RECOMMENDATIONS

(a)  We reiterate a number of recommendations made in the Committee's Employment Strategy report that the Government should simplify conditions of qualification for schemes, devolve more discretion to front-line staff and to recipients of funding, make greater use of intermediate labour markets, tackle regional and local more effectively and improve assistance for those contemplating self-employment or starting a small business (paragraph 15).

(b)  We invite the Government to consider whether the driving cause of these problems is the balkanised structure of the New Deal and, if so, whether the different new deals, pilots and programmes should be rationalised into a Single New Deal, with different eligibility criteria for benefits but a single gateway for job help. This flexibility would draw on the experience of Action Teams for Jobs, and be aimed at all economically inactive people, whether claiming or not (paragraph 16).

(c)  The Committee agrees with the view expressed by Professor Fothergill that not enough emphasis is placed upon regional employment policies. A wider view of the causes of local and regional unemployment is required if the local and regional concentrations of incapacity benefits claimants are to be effectively tackled (paragraph 25).

(d)  We believe that a substantial number of the 2.7 million incapacity benefits claimants do represent 'hidden unemployment', however, we do not believe this means that these people have wrongly or fraudulently claimed (paragraph 28).

(e)  The Committee supports the move to change the name of Incapacity Benefit to something with more positive connotations. This will help to dispel the myth that many disabled people are unable to work (paragraph 29).

(f)  We recommend that occupational nurses and Disability Employment Advisers should have more input into the Personal Capability Assessment. We also recommend that the Government investigate the 'non­NHS' models of voluntary groups and private providers, who have developed medical models aimed at job retention and, where that is impossible, a rapid return to work. We further recommend that this should be built into the pilots proposed in the Green Paper, so that half of the pilots should have their medical services delivered other than through the NHS. We hope that this would ensure that consistent standards are operating across the UK (paragraph 32).

(g)  The Committee recommends that all frontline staff should undergo disability awareness training to prevent disabled people being further disillusioned by the service (paragraph 39).

(h)  We call on the Government to say how big the new team of specialist advisers will be, how their role will differ from that of the Disability Employment Advisers and what action is being taken to reduce the turnover of Disability Employment Advisers. We welcome the Green Paper's proposal that those disallowed incapacity benefits should automatically see a Disability Employment Adviser or specially trained Jobcentre Plus adviser, but we believe the Government should make it standard procedure that those moving from Incapacity Benefit to Jobseeker's Allowance see a Disability Employment Adviser (paragraph 42).

(i)  We recommend that the Government provides sufficient resources to ensure the intensive work-focussed regime can be implemented effectively, preferably allowing appropriately trained staff to manage actively their caseload and at the very least ensuring staff are not over-burdened to the point where they cannot deliver a high quality service (paragraph 45).

(j)  We recommend close working with a range of disability organisations to ensure all aspects of disability access, including access to information and transport, are addressed. We also ask the Department for Work and Pensions to ensure that all its JCP offices are fully accessible to disabled claimants and that hearing loops are available for use (paragraph 46).

(k)  We recommend the Department makes every effort to reassure participants in the intensive work-focussed regime that participation will not lead to loss of benefit (paragraph 49).

(l)  We recommend that contact is made with people in the exempted categories to ensure that they are fully aware of the services Jobcentre Plus has to offer and that they can access these services should they so wish (paragraph 51).

(m)  We recommend that the Access to Work budget should be increased by a significant proportion to reflect the number of disabled people who want to work and who need support to enable them to do so. We also urge the Government to embark on a much wider publicity campaign - aimed at disabled people and their employers - to increase awareness of Access to Work (paragraph 57).

(n)  Jobcentre Plus should work more closely with employers to ensure the retention and rehabilitation of employees. The Committee welcomes the rehabilitation pilots outlined in the Green Paper but is concerned that no mention is made of support to ensure job retention for employees who become disabled. We believe that much more support should be available to prevent disabled people from dropping out of the labour force (paragraph 61).

(o)  We strongly recommend that the Government ensure that half of the pilots are provided by the private and voluntary sectors, to allow a much greater range of approaches to be tested (paragraph 61).

(p)  The funding for New Deal for Disabled People is not in proportion to the numbers of people targetted and does not reflect the level of support required by participants. The Committee agrees with evidence from a range of organisations calling for an increase in the funding allocation of NDDP in relation to the other New Deal programmes (paragraph 64).

(q)  We believe that a payment at the beginning of a contract with New Deal for Disabled People job brokers should be made to assist with local marketing. We believe New Deal for Disabled People should remain voluntary (paragraph 67).

(r)  The Committee recommends that more resources should be channelled into helping those disabled people who are further from the labour market by the use of 'soft skills' enhancement and helping those with greater support needs. In our report on the ONE pilots and in the Employment Strategy report, the Committee recommended that the Government should review the use of targets dependent on job outcomes and develop targets based upon 'distance travelled'. We are pleased that these recommendations have been taken on board and look forward to hearing how these measures will be implemented (paragraph 71).

(s)  The Committee recommends three changes to the funding structure of NDDP. First, the initial payment at registration of clients should be increased from £100 to £500 in acknowledgement of the costs of work preparation. Second, the funding structure which penalises contractors when clients move into part-time rather than full-time work should be reformed to recognise that finding, and retaining, part-time work is a big achievement for many disabled people, which involves just as great an amount of resourcing by the broker as moving them into full-time work. Third, we believe Jobcentre Plus offices should have a discretionary budget to provide rehabilitation services for claimants who have been on incapacity-related benefits, or economically inactive through illness or disability but not claiming benefits. This would not be funded according to job outcomes (paragraph 76).

(t)  We recommend that this approach be piloted in the areas of the country with high Incapacity Benefit levels, in particular those which suffered economic dislocation from the closure of mining and shipbuilding businesses, as highlighted in paragraphs 20 and 21 (paragraph 76).

(u)  Having listened to their arguments, the Committee believes that the Jobcentre Plus model is the most effective administrative format and that any separation would be a step backwards (paragraph 78).

(v)  The Committee is concerned that disabled people still face considerable financial barriers in the move from benefits to work and recommends the Government introduce a four week complete benefit run-on for disabled people moving into work (paragraph 83).

(w)  The Committee supports the idea of a 'back to work diary' and urges the Department to consider how this might be implemented (paragraph 86).

(x)  The Committee welcomes the Return to Work Credit. We do not believe it needs piloting and believe that it should be extended nationally as soon as possible. We also recommend that the credit should be excluded from the Housing and Council Tax Benefits income calculation and would welcome clarification on how the Department plans to deal with claimants once they reach the end of their claiming period (paragraph 88).

(y)  The Committee recommends that the earnings disregard should be raised to £35 per week. This would enable a full day's work at minimum wage levels and would help to reduce the financial leap between living on benefits and moving into work of more than 16 hours a week, supported by tax credits (paragraph 90).

(z)  We therefore recommend reducing the qualifying hours to 12 hours per week for those with disabilities while (as recommended above) raising the disregard to £35 per week (paragraph 92).

(aa)  We recommend that entitlement to the 52 Week Linking Rule should be automatic (paragraph 94).

(bb)  The Committee recommends the Department explore further the extent to which Disability Living Allowance reviews act as a financial disincentive to work and consider establishing a fixed­term Disability Living Allowance 'moratorium' when a claimant first moves into work to enable them to adjust to their new financial situation (paragraph 96).

(cc)  We recommend that the DWP work with the DfES and Government Information Service to ensure that a positive perception of disabled people is widely promoted (paragraph 106).

(dd)  We recommend greater effort is put into promoting the business case for employing disabled people, especially for small and medium sized businesses (paragraph 110).

(ee)  The Committee is concerned that the definition of disability under the Disability Discrimination Act could be preventing many people from using the provisions of the Act. We urge the Government to work with the Disability Rights Commission and other disability organisations to review the definition to ensure that people who are genuinely disabled can be protected by the Disability Discrimination Act (paragraph 115).

(ff)  The Committee welcomes the Government's commitment to civil rights for disabled people and hopes that the momentum continues apace. The next few years will bring several key legislative changes, including the planned Disability Bill, which we hope will make a real difference to the employment opportunities of disabled people. The ending of the small employer exemption and the exemption of excluded occupations is welcome, as is the intention to place a duty on public bodies to promote equality of opportunity for disabled people. We strongly urge the Government to ensure that all of these extensions of rights for disabled people will be widely publicised to employers and the general public. Awareness-raising is crucial to their success (paragraph 116).


 
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