APPENDIX 9
Memorandum submitted by the Centre for
Applied Social Sciences (EDP 13)
SUMMARY
The evidence assembled here is the product of
research studies that have been commissioned by the Department
of Health and the Low Pay Commission. Since this research has
been published in diverse journals and no single government department
has an overview, this submission aims to synthesise the findings
in relation to the questions posed by the Work and Pensions Committee.
The findings brought together here relate to five pieces of empirical
research, all undertaken at the Centre for Applied Social Studies
over the past three years.
The first, a survey of the impact of the National
Minimum Wage (NMW) on disabled people gathered evidence about
over 1,000 individuals in employment. It showed that the NMW affected
different disability groups in different ways. While it seemed
to have a particularly adverse effect on people with mental health
problems, people with physical and sensory disabilities were better
off, and people with learning disabilities tended to adjust their
hours to compensate, so they worked fewer hours for the same money.
The second study explored the views of employers
and Disability Employment Advisors (DEAs) in relation to the Disability
Discrimination Act and National Minimum Wage. It found that employers
required more information and support in employing people with
disabilities, while DEAs were more positive than employers with
respect to the costs to employers of taking or retaining disabled
staff, the problems presented by specific disabilities, and the
motivation shown by disabled staff at work.
The third study explored the disincentives to
work that exist in the UK benefits system by comparison to the
US. It shows that less generous disability benefits in the US
are accompanied by an easier return to work "gradient".
This may explain the higher rates of employment among people with
mental health problems in some areas where support programmes
are provided.
The fourth study was a review of the evidence
of effective interventions in helping people with severe mental
health problems to get and keep employment. It found that the
weight of evidence favours the individual placement and support
model of supported employment, and that there is a dearth of reliable
research from a UK context. This review also gathered opinions
from international experts about the feasibility of increasing
the number of people with mental health problems in employment,
since their rate of employment has attained 50% in the US, while
it remains below 20% in the UK.
The fifth study is still under way, and preliminary
findings are expected in March, 2003. This is a national survey
of people who support disabled people into employment, including
DEAs, job coaches and Workstep providers. Returns have been received
from 475 respondents, and we expect that over 500 will respond,
with details of their background, their clients, their employment
practices, and their attitudes towards social inclusion.
1. INTRODUCTION
1.1 In this submission, we present an abstract
from the first four studies, and an outline of the fifth. Three
published papers and one unpublished paper that are cited are
enclosed with this submission. [7]The
data gathered together here are particularly applicable to the
following questions being addressed by the Committee:
— Are the needs of particular groups
of people with disabilities and health problems adequately catered
for? Should employment projects be more inclusive and adapt to
individual need rather than be aimed at people with specific disabilities?
— The tax credit and benefits system:
is it too complex for the circumstances faced by people with disabilities?
Should it be reformed to reduce financial disincentives to find
work?
— What effect does the Disability Discrimination
Act have?
— What experience do other countries
have in tackling the growth in the numbers claiming incapacity-related
benefits?
2. IMPACT OF
THE NATIONAL
MINIMUM WAGE
ON DISABLED
PEOPLE
2.1 The survey reported here found disparities
in the impact of the introduction of the National Minimum Wage
on disabled people. These were associated with age, gender, impairment,
and type of employment setting. The main determinant of whether
individuals gained from the NMW was their status as claimants
of welfare benefits. We also found evidence that paid hours had
been reduced to implement the NMW with no net increase in earnings,
possibly to retain benefits entitlements. We make recommendations
about how the anomalies can be tackled. It may be unrealistic
to expect the Act to have been fully implemented shortly after
it became law, and some of the anomalies found may eventually
disappear. However, many of the inequalities uncovered by this
survey are not addressed by the NMW, specifically those inequalities
associated with impairment and gender.
2.2 Reference
Schneider, J., Simons, K. and Everatt, G. (2001)
Impact of the National Minimum Wage on Disabled People, Disability
and Society, 16, 723-747.
3. ATTITUDES
TOWARDS DISABLED
STAFF AND
THE EFFECT
OF THE
NATIONAL MINIMUM
WAGE: A
DELPHI SURVEY
OF EMPLOYERS
AND DISABILITY
EMPLOYMENT ADVISORS
3.1 This Delphi study drew on the expertise
of a national sample of 100 employers of disabled people, and
a similar number of Disability Employment Advisors (DEAs). It
presents their existing attitudes towards disabled employees before
analysing the effect of the NMW on these views. Differences between
employers and DEAs were found in relation to: the perceived costs
and obstacles to employers of taking or retaining disabled staff,
the problems presented by specific disabilities, and the motivation
shown by disabled staff. There was general agreement that the
NMW has benefited disabled people by making low paid jobs better
paid. A minority of respondents thought it had created additional
obstacles to employment for disabled people. Some disabled employees
appear to have been adversely affected by the interaction of the
NMW with the Supported Placement Scheme (SPS, now Workstep) and
the benefits system. Understanding employers' perspectives may
facilitate the promotion of work opportunities for disabled people.
3.2 Reference
Schneider, J. and Dutton, J. (2002) Attitudes
towards disabled staff and the effect of the National Minimum
Wage: A Delphi survey of employers and Disability Employment Advisors,
Disability Society, 17, 283-306.
4. SOCIAL SECURITY
AND INCENTIVES
TO WORK
4.1 Employment rates among mental health
service users are much higher in some parts of the US than in
the UK. For example, New Hampshire reports employment rates of
30-50 per cent over the last 10 years compared to about 10-15
per cent in the UK. In this article, case studies are used to
examine how the welfare benefits system affects work incentives
for people with mental health problems. Idealised budget constraints
are presented to illustrate the complex relationship between work
and welfare, showing how a person's net income changes as they
move off welfare and into paid work. The discussion uses this
data to examine the main criticisms of the welfare benefit system
and attempts to explain the difference in employment outcomes
between the UK and the US.
4.2 The paper concludes that the following
steps that could promote social inclusion and reduce benefit barriers
to employment:
— Good quality welfare rights advice
for those seeking work.
— A review of Housing Benefit.
— Allowing people to retain their benefits
whilst in work.
— More widespread access to support
into work and support in work.
4.3 Reference
Turton, N. G. (2001) Welfare benefits and work
disincentives, Journal of Mental Health, 10, 3, 285-300.
5. ABSTRACT:
BRIDGING THE
GAP BETWEEN
SEVERE MENTAL
ILLNESS AND
PAID WORK:
A REVIEW
OF THE
EVIDENCE AND
EXPERT OPINION
5.1 This "expert topic paper"
reports a review of evidence on occupational outcomes for people
with mental health problems, commissioned by the Department of
Health. Our aim was to add to the knowledge yielded by the recent
Cochrane review on vocational rehabilitation, by including evidence
about a broader range of interventions, with less rigid inclusion
criteria and inviting acknowledged experts to contribute to its
evaluation. A review of the literature around supported education,
sheltered work, and paid employment was undertaken. The experts
were then sent the draft, and invited to criticise the interpretation
of evidence, and rate their level of agreement with the inferences
drawn. The evidence is summarized in tables, together with implications
for a range of stakeholders. A draft article summarising the results
is enclosed. [8]
5.2 References
Heyman, A., Turton, N. and Schneider, J. (2002)
Occupational outcomes: from evidence to implementation. An
expert topic paper commissioned by the Department of Health.
Not publicly available. Centre for Applied Social Studies, University
of Durham.
Schneider, J., Heyman, A. and Turton, N. (submitted
for publication[9])
Bridging the gap between severe mental illness and paid work:
a review of the evidence and expert opinion.
6. A PROFILE
OF EMPLOYMENT
OFFICERS: PROJECT
OUTLINE
Richard Wistow, Research Associate and Dr. Justine
Schneider, Senior Lecturer, Centre for Applied Social Studies,
University of Durham
6.1 Aims
The aim of this study is to find out about all
those people who provide support into employment, whether they
work for statutory or voluntary agencies. We want to know about
their qualifications, and how they do their job. We are also asking
them about their needs for training, and attitudes towards employment
and disability. We are including all people who provide supported
employment, regardless of their target client group, in order
to map the entire provision of employment support in the UK. By
describing current practice, as well as attitudes towards employment
support, the research will identify factors that are likely to
reflect best practice.
6.2 Methods
Project partners assisted in the development
of this research tool. These include: service users, representatives
of key employers of EOs (Shaw Trust, Mencap, Remploy and Scope)
and key trainers in the field. Interviews with 30 people with
learning difficulties who have experience of employment helped
us to develop the questionnaire. A survey of managers of supported
employment services will also be undertaken by telephone. The
use of Bayesian statistical analysis in addition to conventional
statistical analysis gives added scientific value to the study.
6.3 Timescale
Preliminary analysis of the national survey
will be completed by mid-March, 2003. The study will be completed
by the end of 2003.
Dr J Schneider
Senior Lecturer
20 December 2002
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