Select Committee on Work and Pensions Appendices to the Minutes of Evidence


APPENDIX 18

Memoranda submitted by the Institute for Applied Health and

Social Policy, Kings College, London (EDP 27)

  This response recognises that there are people with mental health problems and physical impairments who are unwillingly at risk of losing their employment or who are unwillingly unemployed.

  There are others who do not feel confident of their ability to sustain employment. They fear the lack of financial security offered by the benefits system and the coercive approach taken by employment and social security services, and are therefore unlikely to try out paid or unpaid work.

  There is thus a failure to act before the individual with a health problem or impairment has become affected by the disabling process of unemployment and assessment. There is a corresponding failure to support people out of the "disabled" status thrust upon them, making it difficult for them to become an active part of the workforce.

  The response highlights the factors which propel people into a status where they are deemed to be disabled and incapable of work. These factors are:

    —  The benefits system.

    —  The lack of effective employment support and job retention services.

  It is acknowledged the benefits system is too complex and not achieving it's aims. The key areas of concern are:

    —  Part-time work is not financially viable.

    —  Financial security available to those trying out work is insufficient.

    —  The fear of triggering a Personal Capability Assessment is a major deterrent to trying out any voluntary or paid work.

    —  Coercive approaches do not lead to sustained employment.

    The lack of effective employment support and job retention services:

    —  The NDDP scheme is not able to cater for people with significant health problems or disabilities. Instead, a case management approach with the DEA could provide a single gateway for all whilst meeting specialist needs.

    —  Timely prevention of job loss involving the Access to Work scheme, the GP, private sector, Employee Assistance Programmes, legal advice etc in job retention programmes are essential to avoid people with health problems becoming disabled.

    —  Coercive approaches do not lead to sustained employment.

  The response notes that there are lessons to be learnt from the New Deal pilots and from the Avon and Wiltshire Mental Health Trust Job Retention Pilot which can contribute to the design of more effective services.

FULL RESPONSE

1.   Do the high numbers claiming Incapacity Benefit represent hidden unemployment?

  There are people claiming Incapacity Benefit who would like to work. They may have a physical impairment or mental health problem, but they do not feel totally "incapacitated" or incapable. However, the processes within the benefits system and employment service confine them to a role of "disabled person" and incapable of contributing in the job market. The main reasons why many cannot access employment is because:

    —  the support systems required to find, get and maintain the right job are not available;

    —  people know if the job does not match their abilities and support needs then it cannot be sustained;

    —  part-time jobs are not financially viable due to the benefits system: an estimated 80% of those claiming sickness benefits because of their mental health problems are prevented from working for more than four hours a week. As they claim means-tested benefits, any earnings above £20 a week will result in a similar reduction in their housing and income benefits, and, more seriously, their benefits are likely to be delayed or reviewed. Many of these claimants could be economically active if the option of part-time work for eight to 15 hours was available. For many, part-time work could lead in time to full time employment;

    —  intermittent employment for those with fluctuating health problems would be possible if the benefit system was improved to ensure that the financial penalties above were removed and if financial security were improved; and

    —  financial security (offered by the Linking Rules) is required if a person is to risk leaving the benefit system. At the moment this is not sufficient—it is time limited and conditional on registering successfully before taking up employment. There is no adequate guide to the 52 Week Linking Rule. The 104 week Linking Rule does not protect Income Support or Housing Benefit.

  We suggest:

    —  In order to reduce the high numbers of people on Incapacity Benefit who would like to work, the Government address their support needs and the barriers within the benefits system outlined above.

    —  A coercive scheme to remove people from Incapacity Benefit is not likely to result in sustained employment.

2.   What is or should be the role of Jobcentre Plus? Are they doing enough actively to engage people with disabilities in finding suitable work? Are initiatives such as WorkStep successful?

  Jobcentre Plus is focused on persuading disabled people to have a go at work, but comes short on providing the level of support needed. Access to Work is a key service because it is the most flexible means of addressing the barriers in a practical way, but it is extremely difficult for people—especially people with mental health problems—to claim it. Workstep is promising but it remains to be seen how much it offers opportunities for people to get and sustain ordinary employment. Like other options, it may be scuppered by inflexibilities in the benefits system. It still does not address the needs of people with mental health problems.

  We suggest:

    —  The DEA should provide a case manager role.

    —  Providing an assessment of individual aspirations, training and support needs and barriers to employment.

    —  Referring the individual to the service(s) within the local community which can best meet the individual's needs.

    —  Monitoring progress and ensuring the individual moves towards work experience and paid employment at the fastest rate possible for that individual.

    —  The DEA should develop contacts with the full spectrum of employment and training services in the local community, in order to identify what each project can offer.

    —  Jobcentre Plus should offer access to expert benefits advice to all people thinking of moving into work, and benefits advisors should be made aware of all additional costs that might affect people with mental health problems and other disabilities such as prescription costs, taxis etc.

    —  Access to Work should be publicised to GPs as an option to offer patients before they are signed off sick and should be advertised to the public for those at risk of losing their employment due to ill-health or disability (who do not start to use the Jobcentre until the job has ended) and extend more effectively to people with mental health problems.

3.   The New Deal for Disabled People: have the lessons been learned from earlier pilots? How might it be made more effective?

  A number of features of the earlier pilots which were welcomed by job-seekers and those supporting them have been lost. These are:

    —  The case manager role of the Personal Advisor.

    —  The flexibility of the service (eg secondments to improve partnership working, drama and other innovative ways of increasing confidence etc).

    —  Not outcome focused—a broader view was taken so that steps towards employment were valued as well as getting jobs. This approach is likely to ensure greater job sustainability in the long term.

  The NDDP job broker scheme is unable to help people with more complex needs or high support needs, because it lacks this flexibility.

  The work-focused interviews appear threatening in style, and are offered under threat—in that if not attended people will lose their benefits. Although a government edict was issued assuring that people with mental health problems should not lose their benefits without a full investigation and support provided, there is no evidence that this edict has been implemented. There do not appear to be any systems in place for ensuring that the Jobcentres are made aware of customers who are vulnerable and therefore should not have their benefits stopped.

  We suggest:

    —  The positive aspects of the New Deal pilots outlined above are re-instated.

    —  A supportive, voluntary, rather than coercive approach is taken to enabling people to access work.

4.   The role of the private sector in delivering employment services for people with disabilities and health problems.

  The private sector already provides Occupational Health and other early intervention/rehabilitation programmes to prevent long term sickness absence. The public sector should join forces with such schemes to prevent disability and choke off the flow onto Incapacity Benefit.

  One example of partnership working between public and private sectors is the Avon and Wiltshire Mental Health Trust Job Retention Pilot for people experiencing mental health problems. This pilot is being jointly funded by the Department of Health and Department of Work and Pensions. What is unique about this pilot is that it has linked with a number of private sector organisations that provide services which may benefit clients of the job retention team. Some of the private services offered include: stress audits; conflict and mediation management; and legal advice on employment law.

  Additionally, many private services such as Employee Assistance Programmes (EAPs) are more socially inclusive and promote early intervention as they are available to all employees within an organisation for a set cost to the employer. EAPs provide telephone counselling to all employees and effective support for mild mental health problems and a range of issues that are factors in the development of mental health problems.

  We suggest:

    —  Use the learning, experience and current service provision of the private sector, particularly in prevention and early intervention, in partnership with public sector mental health and employment services.

5.   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?

  People with mental health problems are inadequately catered for because the mental health professionals do not regard employment as important. Jobcentre Plus and DEAs in particular need to work in partnership with mental health services, to ensure all people with experience of mental health problems get appropriate encouragement and support to access work.

  Generic services do not address the fact that some groups are more discriminated against than others. Indeed they can make it worse by cherry picking and thinking that they are doing a good job, whilst in fact those who are experiencing long term unemployment because they have specific support needs and barriers due to their history of mental ill-health continue to be excluded from employment.

  We suggest:

    —  Whilst specific expertise is essential for the different types of health and disability problems, a single gateway is required.

    —  The role of the DEA as Case Manager, familiar with the full spectrum of resources in the community, referring clients out to specialist services as required, would be an ideal way of providing this single gateway with access to the expertise required.

6.   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?

  The benefit system for people who claim because of "incapacity" directly deters claimants from trying education, training, voluntary work and part-time permitted work. This is particularly prevalent where people have a mental health problem or other "hidden" disabilities. People who believe that they are unable to compete for and keep a job are very afraid of putting their incapacity benefit income at risk. Fear of triggering a Personal Capability Assessment is widespread amongst people with mental health problems. Many refuse to undertake any activity which could make such an Assessment more likely. The resulting inactivity is damaging to mental health and further corrodes self-belief and motivation for employment. Radical reform is needed.

  The system is also too complex and the financial disincentives create further considerable barriers to employment for people with mental health problems and disabilities.

  The government should pay more attention to the gap between four hours and 16 hours paid work. All tax credits should provide the means to a decent standard of living, not poverty level wages.

  We suggest:

    —  The basis for entitlement to incapacity benefits is reviewed and other criteria are found. Level of disadvantage and costs of disability could be considered as an alternative.

    —  All financial penalties for claimants, such as reduced benefit levels, which follow from periods in employment, are removed.

    —  Means are found to allow those with a partial capacity for work, whether part-time or in intermittent employment to become economically active (see paragraph one above).

    —  Tax Credits are paid to provide a decent standard of living. Housing Benefit and Council Tax Benefit regulations are amended to exclude Tax Credit from tapers. At present one administration gives only for another to take away.

7.   How does discrimination hinder the employment of people with disabilities?

  Discrimination affects all people with disabilities who apply for jobs, but research consistently shows that people with mental health problems face the greatest discrimination.

  Diksa & Rogers (1998) found that employer's reluctance to hire and retain staff with a mental illness included concerns about the symptoms of the illness, it's fluctuating nature, work performance and work personality.

  "Working Minds" policy paper (Blackwell, Burns, & Hardy, 2001) reported that discrimination is likely to be common amongst managers and other employees as well as employers. Moreover, discrimination extended beyond personnel and employment matters to hostile behaviour towards those with mental health problems.

  We suggest:

    —  Involving mental health service users in both the training of Jobcentre staff and in working with employers, by doing presentations on mental health, the impact that mental ill-health can have on employment, and the ways of supporting people with experience of mental ill-health to remain in or move into employment.

    —  Government bodies provide a lead to other employers, by employing people with experience of mental health problems and disabilities and by providing the necessary (low-cost or nil-cost) good management systems that ensure adequate support is provided. The recent Department of Health document, "Mental Health and Employment in the NHS" demonstrates how this might be done.

8.   What effect does the Disability Discrimination Act have?

  Although the DDA makes little impact on the recruitment of people with disabilities or mental health problems, it does reduce the tendency to dismiss staff with health problems. Many employers are now more cautious and seek advice before dismissing staff in these circumstances.

As mentioned above, the NHS and the public sector as a whole should give a lead on recruitment.

  We suggest:

    —  There is a wide publicity campaign particularly when the DDA applies to smaller employers.

    —  The publicity emphasises the positive contribution that can be made by disabled people and people with mental health problems in the workplace and the low cost (if any) of most "reasonable adjustments".

    —  Legal advice for employers and employees on the DDA is freely and readily available.

9.   What experience do other countries have in tackling the growth in the numbers claiming incapacity-related benefits?

  Other countries face similar problems, but some have been more active in rehabilitation, for instance Australia. There is more recruitment of people with mental health problems within mental health services in USA.

Dr.Bob Grove

Patience Seebohm

Judy Scott

Tina Thomas

Mo Hutchison

Helen Lockett

Adam Pozner

Brenda Williams

Sandhya Dass

2 January 2002


 
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