APPENDIX 31
Memorandum submitted by the Department
for Work and Pensions (EDP 42)
SUMMARY
1. The Government has set out in its Green
Paper "Pathways to Work—Helping people into employment",
published on 18 November 2002, [24]its
strategy for a more coherent way of supporting people with health
problems and disabilities who could work to realise their potential.
The consultation period on those proposals will run until 10 February
2003. This Departmental memorandum should therefore be read in
the light of the information and proposals set out in the Green
Paper.
2. Like all jobless people, where they meet
the eligibility criteria, people with disabilities or health problems
can access the full range of Government employment programmes.
They can also be eligible for early entry to the New Deal for
Young People, New Deal 25 plus and Work Based Learning for Adults.
3. Within Jobcentre Plus there are initiatives
aimed specifically at people with health conditions or disabilities
to help them overcome the labour market barriers they may face.
Work-focused meetings require all new claimants to Incapacity
Benefit to discuss the opportunities available to them to prepare
for their return to work. Specialist Disability Employment Advisers
provide support to people facing the complex barriers to work
associated with some disabilities and the New Deal for Disabled
People was introduced to help more disabled people get and keep
jobs. The Access to Work programme provides advice and practical
help for disabled people with the additional employment costs
associated with disability, for example, in travelling to work,
adapting the workplace, obtaining special equipment and support
workers. In addition WORKSTEP provides job support to disabled
people who face more complex barriers to finding and keeping work.
4. The proposed new "Choices Package",
outlined in the Green Paper, will give early frequent support
to those receiving Incapacity Benefit from skilled personal advisers;
direct access to a range of comprehensive specialist programmes,
including joint programmes with the NHS, to mitigate the impact
of a person's health condition on their return to work and provide
clear financial incentives to work.
5. The Government is committed to improving
civil rights for disabled people and to this end the Disability
Discrimination Act will be extended in October 2004 to cover currently
excluded employment and occupations, for example the police and
prison officers, other than serving members of the armed forces.
6. The Disability Rights Commission (DRC)
was set up in April 2000. Its function is to work towards the
elimination of discrimination and promote equality of opportunities
for disabled people, promote good practice to employers and service
providers, provide information and advice about the Disability
Discrimination Act (DDA), and advise the Government on a range
of policy issues within its remit.
1. INTRODUCTION
1. People with disabilities and health problems
are nearly five times as likely as non-disabled people to be out
of work and claiming benefits (Winter 2001 Labour Force Survey).
Around one million disabled people not in work say they would
like to work (Winter 2001 Labour Force Survey).
2. The Department for Work and Pensions
brings together, for the first time, civil rights for disabled
people and help for those people with a health condition or disability
who could do some work to find and move into employment and to
become, and remain, independent.
3. We want to do more to help people keep
in touch with the workplace; by working with employers and health
professionals to catch people before they become dependent on
benefits, and by ensuring that tailored rehabilitation and employment
programmes are available. The Government's Green Paper published
on 18 November 2002 "Pathways to Work—Helping people
into employment", sets out its strategy for taking this work
forward.
4. At the heart of this strategy is the
proposed new "Choices Package" giving help to those
with a clear potential to get back into work. The Green Paper
outlines plans to introduce a new approach in three pilot areas
from October 2003 and three more from April 2004: giving early
and frequent support to those on Incapacity Benefit from skilled
personal advisers; direct access to a range of comprehensive specialist
programmes including joint programmes with the NHS to mitigate
the impact of clients' health on their ability to return to work
and clear financial incentives to work. The help we have already
introduced for people with health conditions and disabilities
has made a real difference. But we need to go further: to improve
the support we give to people on incapacity benefits; and to make
sure it is received at the right time to increase the person's
opportunity of a return to work.
5. This strategy needs to be considered
in the context of extended civil rights for disabled people. The
Government has already legislated to protect disabled students
and pupils against discrimination in education, helping them in
the vital processes of preparing for the world of work. It will
also be ensuring that disabled people are better protected against
discrimination in getting and keeping jobs and also when making
use of the employment and training services. In addition the Government
intends to place a duty on public bodies to promote equality of
opportunity for disabled people. A Private Members Bill on this
subject is due to be considered by Parliament later this year.
The Government recognises the particular importance of accessible
transport for disabled people when travelling to work or looking
for jobs and, when implemented, the current Department for Transport
proposals will tackle the present exemptions from some of the
disability discrimination legislation in the area of transport.
6. The Government's strategy also considers
the particular position of older workers. Of these 1.4 million
are claiming sickness and disability benefits. That is an unacceptable
waste of skills and experience—damaging to the economy,
employers and individuals. The Government's macroeconomic policies,
reinforced by employment measures, including New Deal 50 plus
and tackling age discrimination in employment, have already helped
to increase the employment rate of people aged over 50. The Government's
Green Paper: "Simplicity, security and choice: Working and
saving for retirement",[25]
published on 17 December 2002 on pensions and the employment of
older people set out further proposals for increasing the employment
rate of people aged over 50, through encouraging the widespread
adoption of flexible retirement practices to help older people
stay in work longer, and by enhancing our back to work help. It
is likely that this flexibility will benefit older people whose
health means they are no longer able to work full-time and who
currently have to choose between working part-time (and the impact
of this on their income) compared with the pension income they
would receive if they retired.
2. HELP FOR
PARTICULAR GROUPS
OF PEOPLE
WITH DISABILITIES
AND HEALTH
PROBLEMS
Action to date
7. Measures to date include:
— In 1998, Incapacity Benefit linking
rules were extended to 52 weeks (two years for people receiving
Disabled Persons Tax Credit), allowing people to try out work
safe in the knowledge that they can return to the same rate of
benefit if the job doesn't work out.
— In November 1999, the Personal Adviser
service was introduced for people claiming incapacity benefits
in all ONE areas. In July 2001, New Deal for Disabled People was
introduced on a national basis.
— A Capability Report has been introduced
as part of the Personal Capability Assessment, allowing additional
information to be gathered about a person's capabilities. It is
completed by examining doctors and is used by personal advisers
in planning a return to work.
— Since April 2000, people who participate
in work trials and placements approved and arranged through Jobcentres
can retain their incapacity benefits.
— From October 2001, all new claimants
in Jobcentre Plus Pathfinders and Work Focused Interview extension
sites are required to attend a personal adviser work-focused meeting
to discuss the opportunities available for taking up work. They
receive further support of this kind at intervals during their
claim, at least once every three years.
— From April 2001 people disabled early
in life, who have never had the opportunity to work, and who claim
benefit before the age of 20 (or 25 if a higher education student
or trainee) can receive Incapacity Benefit without having to satisfy
the Incapacity Benefit contribution conditions. Recipients of
Severe Disablement Allowance under the age of 20 on 6 April 2001
were automatically transferred to long-term Incapacity Benefit
in April 2002, making them up to £28.10 per week better off.
— From 8 April 2002, new "Permitted
Work" rules were introduced. Any Incapacity Benefit recipient
is now able to earn up to £20 a week for an unlimited period,
or work for less than 16 hours and earn up to £67.50 a week
for 26 weeks. Permitted Work can be extended for a further 26
weeks if progress is being made towards work of 16 hours per week
or more.
— The earnings limit for Incapacity
Benefit is regularly uprated to keep pace with the National Minimum
Wage, and has increased from £48 per week in 1998 to its
current limit of £67.50.
— "Pathways to Work—Helping
people into employment", published on 18 November 2002, is
the next step forward in the Government's welfare to work strategy
for people with health problems and disabilities.
Next Steps—trying a new approach
8. In the future the Department plans to
offer people coming onto incapacity benefits much more help and
a more coherent package of choices and options than they have
had previously. In particular, we will encourage those for whom
this is a realistic prospect to focus on getting back to work.
Providing a better framework of support
9. We will build on the current framework
of support offered through Jobcentre Plus by:
— requiring new incapacity benefits
claimants to maintain contact with skilled personal advisers throughout
the crucial early stages of a claim through a series of work-focused
meetings (those with the most serious disabilities and illnesses
will be exempted from this requirement);
— requiring new claimants to draw up
an action plan with their personal advisers to help them focus
on their long-term goals and set out the steps they are going
to take to prepare for a return to work;
— developing a new team of specialist
personal advisers to equip them with a much broader set of skills.
The aim is to enable them to directly support this group back
to work or onto a relevant employment programme, giving them a
better understanding of the obstacles to work faced by many on
these benefits; and
— linking the Incapacity Benefit medical
assessment process closely with work-focused meetings. This will
allow much quicker decisions to be taken on whether a person should
be on an incapacity benefit or back at work (or claiming Jobseeker's
Allowance) and allow a clearer focus on long-term goals for those
left on these benefits.
Direct access to a wider range of help
10. People claiming incapacity benefits
can already access a range of disability and mainstream employment
programmes such as the New Deal for Disabled People, Work-Based
Learning for Adults and basic skills provision. Although at present
the take-up of such programmes amongst claimants is very low,
our improved work-focused meeting regime will enable us to ensure
people are made more fully aware of their rights to access such
provision and encouraged to take it up. We shall be reviewing
carefully the provision of support, training and rehabilitation
available to clients, and how this is presented coherently and
attractively. In addition we will fill a critical gap in the present
provision of services through the establishment of new joint programmes
combining support to find employment delivered by Jobcentre Plus
with health-focused rehabilitation delivered in collaboration
with the NHS. The key focus of these short programmes will be
to help those people with conditions such as depression, back
pain and heart disease understand the impact of their condition
has on their capacity to work, to increase their confidence to
work or undertake training and lead as normal a life as possible.
More details of these proposals are set out in "Pathways
to Work—Helping people into employment".
Offering improved, visible financial incentives
11. Despite delivering a range of new financial
incentives such as Disabled Person's Tax Credit (and, from April
2003, the Working Tax Credit) and the Job Grant there is still
room to improve incentives for those on incapacity benefits. To
encourage people to look for work and improve the certainty that
they will be better off working we will pilot a simple Return
to Work credit, paid through Jobcentre Plus, to help all those
moving off an incapacity benefit back into work. It will be paid
at £40 a week for 52 weeks where personal income in work
will be less than £15,000 a year. This will radically improve
financial incentives for those returning to work and provide more
financial support to enable claimants to compete effectively in
job markets. Advisers will continue to be able to make awards
of up to £300 to spend on anything that will help their client
obtain a job (for example new clothes for an interview or work
equipment) through widening access to the Advisers' Discretion
Fund.
12. By offering this support, we will be
piloting a "Choices Package" for incapacity benefit
claimants—balancing improved opportunities with greater
responsibilities to actively consider a return to work.
Better support for people with health problems
on JSA
13. We know that large numbers of people
have to transfer from incapacity benefits to Jobseeker's Allowance
each year because their degree of incapacity is no longer sufficient
to entitle them to incapacity benefits. Most still have residual
health problems, poor work histories and other obstacles to work
and significant proportion of them become long-term unemployed
or move back onto incapacity benefits. Few take up or are offered
any specialist help to move back to work. We will therefore provide
better support by: ensuring those transferring across the benefits
automatically see a specialist adviser when they first claim Jobseeker's
Allowance, draw up a jobseeking agreement that reflects any residual
health issues; and automatically referring them to the tailored
support available through the relevant New Deal, without the normal
waiting period of eighteen months. In addition our staff will
ensure all those with health problems on Jobseeker's Allowance
are offered appropriate support.
Other stakeholders
14. The changes being introduced through
Jobcentre Plus are only part of the solution. The significant
steps we are taking to extend basic rights and opportunities to
people who suffer discrimination as a result of their disabilities
is also crucial. Others have their role to play:
— employers and trade unions—who
need to jointly promote an environment where as many employers
as possible are managing sickness absence actively and positively,
where occupational health support is encouraged and accessed and
where employees with health problems or disabilities are supported
back into the workplace wherever possible. This will cut the significant
cost of sickness absence, makes good business sense and helps
employees in the long-term; and
— health professionals—who need
a greater awareness of the importance of work retention or resumption,
where this is possible, as part of the most effective clinical
management of many of their patients and who have been held back
by the absence of suitable NHS provision.
15. The 2002 Spending Review announced just
under £100 million in additional funds to establish this
new approach in six pilot areas across the country starting from
late 2003. It will be evaluated thoroughly and evidence will be
gathered from the pilot before we make any decisions on national
extension.
3. INTO WORK
SUPPORT AND
PROGRAMMES
Role of Jobcentre Plus
16. Jobcentre Plus plans to spend over £220
million in 2002-03 on specialist programmes for people with disabilities.
This includes WORKSTEP, Access to Work, the Job Introduction Scheme,
and Work Preparation.
17. Jobcentre Plus employs some 650 specialist
Disability Employment Advisers and Access to Work Advisers. These
advisers receive in-depth training in how to support disabled
people, including those with learning difficulties.
18. All other staff dealing with customers
receive disability awareness training. The courses include training
modules on dealing with clients who have mental health and/or
learning difficulties.
19. We also provide guidance for all staff
on dealing with clients with learning disabilities, which has
been developed in consultation with groups representing disabled
people.
Disability Employment Advisers
20. Disability Employment Advisers (DEAs)
have thorough knowledge of local employers and vacancies. They
will know which local employers are "Disability Symbol"
users and will therefore have guaranteed interviews for any disabled
applicant who meets the minimum requirements for the job.
21. Advisers act as gatekeepers to the full
range of Jobcentre Plus disability programmes, including Access
to Work. They receive in-depth training to equip them to advise
employers and employees on how best to overcome the barriers to
work that disabilities can present.
Access to Work
22. The Access to Work programme is open
to disabled people already in employment (including self-employment),
people changing jobs and unemployed people about to start work.
It helps towards the additional employment costs resulting from
disability, for example help with the costs of travelling to work,
adaptations to premises, special equipment or the cost of providing
human support in the workplace. The programme may also meet the
cost of providing a workplace employment support worker for a
person with a learning disability.
23. Access to Work is available only to
claimants in or starting paid work, and is not available to those
in unpaid work eg volunteers or unpaid trainees. Separate arrangements
exist for those disabled people participating in education or
training; and for those undertaking unpaid work through a New
Deal.
24. Those seeking help claim support from
the programme through their local jobcentre, or by telephone to
an adviser in an Access to Work Business Centre. The adviser,
together with the applicant and the applicant's employer, will
then find the most effective solution to meet the needs of the
employee in the workplace. Support agreed by the Department usually
continues for a maximum of three years before being reviewed.
If continuing help is required, further grants may be made for
less than the full cost. Costs arising from Access to Work support
may be shared, usually with employers.
Job Introduction Scheme
25. The Job Introduction Scheme provides
a weekly grant of £75 towards the employment cost incurred
during the first few weeks of employing a disabled person. This
is usually for six weeks but may be extended to a total of 13
weeks. The scheme is for use at the discretion of Jobcentre Plus
staff in situations where a disabled applicant is considered suitable,
but the employer has genuine doubts about the individual's ability
to cope with the proposed job or place of work. The programme
helps around 4,000 people each year.
Work Preparation
26. Work Preparation is an individually
tailored programme that enables people to overcome barriers to
work associated with their disability, and prepares them to join
the labour market with the necessary confidence to find and keep
work.
27. The client's individual needs are identified
during an assessment organised through their Disability Employment
Adviser. Although each client will have specific needs, the broad
areas addressed during the programme can be grouped to include
development in one or more of the following areas:—
— occupational decision making;
— job-finding behaviour; or
28. The programme is open to both recipients
of incapacity or unemployment-related benefit and non-benefit
recipients where they satisfy the following criteria:—
— they have a disability that complies
with our definition, which is compatible with the Disability Discrimination
Act definition;
— they have established job goals,
but also meet at least one of the three client needs criteria
(above) where no other provision is able to effectively address
their needs;
— they are fit enough to participate
in the programme; and
— they are likely to be capable of
entering work or training by the end of the programme.
29. The Work Preparation programme is delivered
through external contractors, many of whom deliver other Government
programmes. Jobcentre Plus awards contracts through competitive
tendering, and there are around 400 contracts nationally.
30. In addition to general Work Preparation
programmes, in recent years specialised programmes (and pilots)
have developed to provide intensive dedicated help to clients
with severe disabilities. These include specific programmes for
people with traumatic brain injuries, back pain, dyslexia, learning
disabilities and mental health issues. There are also group-based
programmes aimed at building confidence and motivation. Residential
Work Preparation is available for visually impaired clients where
there is no local provision to meet their particular needs.
31. Around 12,000 people are helped by the
programme each year. The length of an individual's participation
in the programme depends on their specific needs, but the average
duration is six weeks and participation rarely exceeds 13 weeks.
All participants receive travel expenses, and some are also entitled
to a rehabilitation allowance of £38 per week.
WORKSTEP
32. In April 2001, the former Supported
Employment Programme was modernised and renamed WORKSTEP to place
greater emphasis on developing disabled people and helping them
move into mainstream employment where possible. WORKSTEP and its
predecessor helps around 21,500 people.
33. WORKSTEP signalled a major change to
the long established programme, providing employment in supported
factories, and jobs with mainstream employers. WORKSTEP increases
the emphasis on individual development and support, tailored to
meet the employers and employees needs. It also supports participants
to progress to unsupported employment where it is possible and
fits in with the disabled person's own circumstances, their employment
potential and their wishes.
34. The programme offers long-term support
where needed and also provides support for people who develop
disabilities in later life to enable them to remain in employment.
Approximately 240 providers deliver WORKSTEP provision including
Remploy. (Remploy is a Government sponsored private company and
is the largest single provider of WORKSTEP.)
35. To date more than 4,500 people have
entered WORKSTEP since its launch and nearly 2,600 have progressed
to unsupported employment. The total budget for the programme,
including Remploy, in 2002-03 is £175.64 million. This is
made up of a baseline of £160 million together with modernisation
and development funding, including an element from the Treasury's
Capital Modernisation Fund to support WORKSTEP contractors to
update their information technology.
New Deal for Disabled People
36. The New Deal for Disabled People (NDDP)
was introduced as an experimental programme. It offers support
to help people with a disability or health condition to find and
keep jobs. NDDP is voluntary and offers eligible people access
to a network of innovative Job Brokers from private, voluntary
and public sector organisations. Job Brokers work with clients
to help them understand and compete in the labour market and support
them in finding and remaining in employment. They agree with each
individual the most appropriate route into employment and work
closely with training providers and other organisations where
an individual needs additional support. The Job Brokers' service
is advertised through mailshots, the NDDP helpline, local Jobcentres
and the NDDP website. Information about NDDP is also given to
eligible people during their work-focused meeting in Jobcentre
Plus offices.
37. The network of Job Brokers across Great
Britain provides support and services to people so they can find
out about moving into work and to help themselves become, and
remain more independent. Job Brokers agree with customers the
most appropriate route into work and how they can help them find
work. They can provide help with developing customer skills, preparing
for interviews and give advice about training and other provision
when additional help maybe needed.
38. Job Brokers are made up of private,
voluntary and public sector organisations and combinations of
these in partnership. They work closely with a variety of employers
to identify employers' needs to help people with a health condition
or disability move into or return to work. They are developing
their expertise in ways that suit the needs of both people with
a health condition or disability and employers, matching jobs
available with the skills needed to fill them and developing skills
for those who do not already have them. Job Brokers are paid on
an outcome—related basis. They receive payment for registering
clients, achieving jobs and also achieving sustained employment.
39. After a slow start Job Broker performance
has settled onto a steady and continuing upward trend. As a result
more than 30,000 people have registered with NDDP Job Brokers
since the programme's launch in July 2001 and well over 6,000
people have been helped into work. A comprehensive evaluation
programme is in place which will enable the Department to assess
effectiveness and ensure that we build on the best of what has
been achieved so far. In particular we shall need to decide carefully
how best to build upon and incorporate the strengths of NDDP within
the improved support arrangements to be developed following the
IB pilots.
New Deal 50 plus
40. From Spring 1997 to Spring 2002 the
employment rate for those aged 50 to State Pension age increased
by 3.4 percentage points to 68.1%, faster than the increase in
the employment rate for younger people, but still below the overall
rate of 74.6%. While the unemployment rate has gone down and the
retention of older workers has improved, the volumes of people
over 50 on sickness and disability benefits, has remained broadly
level. That is why the Government is committed to further increasing
the employment rate for the over 50s and to significantly reduce
the gap between the rates by 2006.
41. We are helping older and disabled jobseekers
back to work through personal advice and financial support. The
New Deal 50 plus is an important package of back to work help
for people aged 50 years or over and who have been out of work
and on benefits for more than six months. It includes a cash employment
credit of £60 per week paid for up to a year to those people,
or their dependent partners, entering full-time employment (£40
for part-time work) or self-employment. It also offers employment
guidance from a personal adviser, job search help and an in-work
training grant. Since the national launch of the programme in
April 2000 to the end of October 2002, over 86,000 people have
come off benefits, returned to work and claimed the New Deal 50
plus Employment Credit. Of those a third are people with disabilities,
but not all were former Incapacity Benefit claimants. Of those
who have claimed the Employment Credit, 7% had been claiming Incapacity
Benefit before moving into work.
42. From April 2003 the New Deal 50 plus
Employment Credit is being replaced by the over 50s return to
work element of the new Working Tax Credit. As the Working Tax
Credit and the new Child Tax Credit are based on household income
rather than personal income, and are tapered against the levels
of income, they will offer the poorest households greater financial
help in the first year, in moving off benefits and back into work.
43. The Green Paper: "Simplicity, security
and choice: Working and saving for retirement" on pensions
and the employment of people over 50 years old sets out the Government's
further proposals to enhance back to work help for people aged
50 years or more.
4. IN WORK
SUPPORT
Tax Credits
44. The 2002 Budget announced the rates
and thresholds for the new Working Tax Credit (WTC) and the Child
Tax Credit (CTC), which from April 2003, will replace Disabled
Person's Tax Credit (DPTC) and provide enhanced support for disabled
people moving into work, and for those with children.
45. The new tax credits will bring people
with disabilities into the same system of support as other workers
and parents, with additional elements to recognise disability
as follows:
— The basic tax credit available for
a disabled part-time worker will be worth up to £68.35 per
week, around £5 more than would be payable under DPTC.
— The Minimum Income Guarantee for
a single disabled full-time worker rises from £172 in 2002-03
to £193 in 2003-4.
— Work incentives will improve for
couples with two disabled workers as the disabled worker element
of WTC will be available for each person who qualifies.
— For working households in which one
or more adults is severely disabled, each qualifying adult will
be eligible for a severe disability element worth up to £16.60
a week.
— Households will no longer be unfairly
penalised for having savings. The DPTC capital rules will be abolished—the
system will treat income from savings just like any other income.
— Single workers with a disability
will no longer start to see their tax credit withdrawn at a lower
level of income than other tax credit recipients, as they do in
the existing system, because there will be a single point at which
the WTC starts to be withdrawn.
— Eligibility for the childcare element
of the Working Tax Credit will include those who use approved
childcare in their own home, helping many working families with
disabled children. This will include families using childcare
provided by domiciliary workers or nurses from agencies registered
by the National Care Standards Commission under regulations to
be introduced by the Department of Health.
— The Child Tax Credit will support
families with disabled and severely disabled children. The disabled
child element of the CTC will be £41.30 in 2003-04, compared
with £35.50 currently.
— For those people with children, there
will be more security when moving into work—families will
continue to receive Child Tax Credit when they return to work
without the need to reapply. The Child Tax Credit will be paid
at the maximum rate for all families until income reaches £13,000
a year, delivering a secure stream of income for families moving
off welfare and into work.
46. For more information on the Working
Tax Credit and Child Tax Credit, including the full list of rates
and tapers, see The Child and Working Tax Credits paper of April
2002 (number 10 in the Modernisation of Britain's Tax and Benefit
System series), which accompanied the Budget. Some illustrative
examples are attached at Annex A to this memorandum.
47. We are also concerned to find better
ways of helping employers to retain employees who fall sick at
work. The Job Retention and Rehabilitation Pilots will start later
this year and will test whether health interventions, employment
interventions or a combination of the two are most likely to help
those at risk of losing their jobs.
Disability Living Allowance
48. Entitlement to Disability Living Allowance
(DLA) is assessed on a person's need for help with personal care
and/or difficulty getting around. Work in itself does not affect
entitlement to DLA. Many people receiving DLA do work, but the
sort of work a person is doing may indicate that the information
we have about their care or mobility needs is incomplete or out
of date. An award may be reviewed in these circumstances.
49. Decision makers are encouraged to look
at the whole picture of support a person is getting and not to
make unjustified assumptions that working means that the severity
of disability has changed. However, the Government recognises
that many disabled people can only work with additional help and
support. This can sometimes mean they are entitled to a higher
rate of DLA.
5. TACKLING DISCRIMINATION
Disability Discrimination Act
50. The employment provisions of the Disability
Discrimination Act (DDA), implemented in 1996, protect disabled
people from discrimination in the workplace. They prevent employers
from treating a disabled person less favourably than others, unless
this can be justified. They also require an employer to make "reasonable
adjustments" to working arrangements or premises in order
to facilitate the employment of a disabled person, unless he can
justify not doing so.
51. The Government is currently engaged
in a wide-ranging public consultation (Equality and Diversity—the
way ahead) to implement the disability provisions and other aspects
of the European Employment Directive. The consultation began on
23 October and includes detailed draft regulations to extend the
protection which the DDA affords to employees and job applicants.
Employers with fewer than 15 staff, and some specific occupations
are currently excluded from the employment provisions of the DDA.
The small employer exemption and that applying to some of the
currently exempted occupations (eg police and prison officers)
will end in October 2004. As a result, over one million small
firms will be covered for the first time and around 600,000 disabled
workers will be newly protected.
52. An employee or job applicant who feels
that he has been discriminated against can bring his case to an
Employment Tribunal, and there is evidence of disabled people
making use of, or seeking advice on, their civil rights.
53. During the period 2 December 1996 to
1 September 2000, 8,908 claims were registered under the employment
provisions of the DDA. Of these 40% were settled through conciliation;
38% were either withdrawn or settled privately and 19% went to
a tribunal hearing. Most of this last group also alleged a breach
of another jurisdiction (eg unfair dismissal). Of the cases heard
at Tribunal, 19.5% were successful.
Disability Rights Commission
54. The Disability Rights Commission (DRC)
advises people of their rights under the DDA, and it has reported
a doubling of visits to its website over the last year to an average
of around 40,000 a month, as well as up to 500 calls to its telephone
helpline daily.
55. It is not possible from research evidence
to determine definitively the impact of the DDA on the employment
of disabled people. However, there is evidence that employers
are increasingly taking account of disability in their employment
policies. For example, research published this year shows that
52% of employers have a policy which covers the employment of
disabled people, compared with 33% in 1996.
Tackling Age Discrimination in Employment
56. People who are sick or disabled and
aged 50 years or more can experience discrimination in the labour
market both in respect of their disability and their age. In 2001
our extensive national survey on age discrimination found that
about a quarter of the people interviewed who were aged over 50
years old believed they had experienced age discrimination in
employment. However of all those interviewed 90% believe employers
generally discriminate against older workers, but also many employees
felt employers discriminate on grounds of disability. The survey
did however also find positive developments in employer practices
as the number of employers with policies against employing older
people had halved, reducing from 14% in 1999 to 7% by 2001.
European Employment Directive on Equal Treatment
57. The Government has supported the European
Employment Directive on Equal Treatment as mentioned above in
relation to the Disability Discrimination Act, and made a commitment
to introduce age legislation, covering employment and vocational
training, by 2006. The implementation period gives us time to
consult widely with employers, individuals and expert groups,
towards the development of clear and workable legislation. The
Employment Directive provides each member state with a general
framework to implement legislation outlawing discrimination on
the new grounds of age, sexual orientation and religion in employment
and training. On age, the first consultation phase, led by the
Department of Trade and Industry, started in 2002 and the next
public consultation will be in 2003.
Code of Practice on Age Diversity
58. In the years leading up to legislation
the Government is determined to tackle age discrimination. It
has already taken action by encouraging employers to adopt the
standards set out in the non-statutory Code of Practice on Age
Diversity in Employment, which we published in June 1999. Our
evaluation of the Code's impact (DWP published Dec 2001[26])
indicates that a third of employers are now aware of the Code
and the use of age criteria in recruitment has halved from 27%
to 13%. However the evaluation also found that small and medium-sized
employers were less likely to have realised the benefits of age
positive employment practices.
59. The Department is therefore continuing
to encourage employers to realise the business benefits of recruiting,
training and retaining older workers as part of an age diverse
workforce, through our Age Positive campaign. Full details of
these, the campaign and the development of age legislation can
be found on our website www.agepositive.gov.uk.
60. We are also delivering workshops for
small and medium sized employers on the business case for age
diversity. They encourage employers to adopt non-ageist employment
practices, according to the standards set by the Code.
61. The Government's Green Paper on pensions
and the employment of older people, "Simplicity, Security
and Choice: Working and Saving for Retirement", published
on 17 December, sets out a range of measures to encourage employers
to adopt more flexible approaches to retirement that will give
individuals more choice and opportunity to stay in work longer,
according to their personal circumstances.
13 January 2003
Annex A
WORKING TAX CREDIT—DISABILITY CASE
STUDIES
To calculate the award to which a household
is entitled, the different elements relevant to that household
are added up to arrive at the maximum amount they could receive.
Individuals and couples with an income below
the threshold of £5,060 a year will receive that maximum
amount.
For those with income over the threshold, their
award will be reduced at a rate of 37p for every pound of income
over the threshold.
The examples below illustrate how awards will
be calculated in the new system.
Example 1
| Derek is a single worker with a disability and no children. He works full time earning £7,686 a year (£147 a week).
|
| Annual Value: | |
Basic Element | £1,526.22
|
Disabled Worker's element | £2,042.28
|
30 Hour Element | £622.20
|
Maximum Amount | £4,190.70
|
Income over the £5,060 threshold
| £2,626 |
Amount of tax credit withdrawn (37% of income over threshold)
| £971.62 |
| Total tax credit award | £3,219.08
|
| This is equivalent to £61.56 a week. £18.13 a week more than Derek would receive under DPTC.
|
Example 2
| Jenny has a disability and works part time, earning £4,183 a year (around £80 a week). Her husband, John, who is not disabled, works full time and earns £9,150 a year (£175 a week). A total annual family income of £13,333.
|
| Annual Value: | |
Basic element | £1,526.22
|
Second Adult element | £1,500.60
|
Disabled Worker's element (payable for Jenny)
| £2,042.28 |
30 Hour element (payable for John)
| £622.20 |
Maximum Amount | £5,691.30
|
Income over the £5,060 threshold
| £8,273.00 |
Amount of tax credit withdrawn (37% of income over threshold)
| £3,061.01 |
Total tax credit award | £2630.29
|
This is equivalent to £50.30 a week. £15.69 a week more than they would receive under DPTC.
|
| |
Annex B
Caseload Numbers for Incapacity Benefit, Incapacity
Benefit Credits and Severe Disablement Allowance
Year
| Total Caseload
| Incapacity Benefit | Incapacity Benefit Credits
| Severe Disablement Allowance |
1999-2000 | 2,575,000
| 1,505,000 | 740,000 | 330,000
|
2000-01 | 2,630,000
| 1,515,000 | 790,000 | 325,000
|
2001-02 | 2,645,000
| 1,505,000 | 825,000 | 315,000
|
Expenditure
(£ million)
Year
| Total Expenditure
| Incapacity Benefit | Severe Disablement Allowance
|
| 1999-2000 | 7,389,000 | 6,532,000
| 857,000 |
2000-01 | 7,353,000
| 6,504,000 | 849,000 |
2001-02 | 7,530,000
| 6,672,000 | 858,000 |
2002-03 | 7,497,000
| 6,715,000 | 782,000 |
2003-04 | 7,522,000
| 6,774,000 | 748,000 |
Source:
Caseload figures for 1999-2000, 2000-01, 2001-02, taken from
the respective Client Group Analysis (February quarter).
Notes:
All expenditure figures are taken from BFMD analysis.
Caseload figures rounded to the nearest 5,000.
Expenditure figures rounded to the £ million.
AVERAGE AMOUNT PAID
| Number of
claimants
Aug 2001
(Thousands)
| Number of
claimants
Aug 2002
(Thousands)
| Percentage
Change
| Percentage
claiming five
years or more
| Average
Amount Paid
|
IBST(L) [27]
| 94.1 | 90.8 | -3.5%
| N/A | £53.59 |
IBST(H) [28]
| 97.9 | 89.4 | -8.6%
| N/A | £63.79 |
IBLT[29]
| 1,326.1 | 1,341.7 | +1.2%
| 57% | £86.37 |
CREDITS | 819.7 |
855.1 | +4.3% | 35%
| N/A |
| TOTAL | 2,337.8 | 2,377.0
| +1.7% | 45% | £83.17
|
Annex C
Inflows to Sickness Benefit/Invalidity benefit/Incapacity
Benefit 1990 to 2002
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Annex D
Relevant PSA Targets and Summary of Progress
Below is a summary of progress against the relevant Department's
PSA targets.
CSR 98 Objective I: to reduce the cost of economic failure
by actively helping people without a job into work, and providing
them with financial support while they are unable to support themselves
through work, ensuring that rights are matched with responsibilities.
Through the New Deal for Disabled People, in conjunction
with the then DfEE, the DSS will encourage and provide support
for more disabled people to make a transition into the world of
work and reduce their dependency on benefits such as Incapacity
Benefit and Income Support.
Progress:
Target has been achieved.
Objective III: To provide disabled people with the support
and financial security they need to lead a fulfilling life with
dignity.
Maintain a Minimum Income Guarantee for severely disabled
people.
Progress:
Achieved. The Disability Income Guarantee was introduced
in April 2001.
SR2000 Objective II: Promoting work as the best form of
welfare for people of working age, whilst protecting the position
of those in greatest need.
Over the three years to 2004 increase the employment rates
of disadvantaged areas and groups, taking account of the economic
cycle, people with disabilities, lone parents, ethnic minorities,
the over 50s and the 30 local authority districts with the poorest
initial labour market position—and reduce the difference
between their employment rates and the overall employment rate.
Progress: [people with disabilities]
The gap between the disabled persons' employment rate and
the overall rate has closed over the past year. In spring 2001
(the baseline year) the employment rate stood at 47.4%, an increase
of 0.5% points on the year. In winter 2001 (the latest data) the
employment rate was 48.3%, up 0.7% points on the year, and the
gap with the overall rate stood at 26.2% points, down 0.9% points
on the year. However, the numbers on Incapacity Benefit continue
to rise, albeit at a slowing rate. DWP needs to do more to establish
a clear trend. The extension to the New Deal for Disabled People
is now under way and will be closely monitored. The roll out of
Jobcentre Plus will see the introduction of Work-Focused Interviews
for sick and disabled people making new claims for benefit with
the intention of supporting more people into job search and work.
SR2002 Objective IV: improve rights and opportunities for disabled
people in a fair and inclusive society.
In the three years to 2006, increase the employment rate
of people with disabilities, taking account of the economic cycle,
and significantly reduce the difference between their employment
rate and the overall rate. Work to improve the rights of disabled
people and to remove barriers to their participation in society.
How we will measure progress:
— Delivering macroeconomic stability will be key
to achieving this target. This is why the employment element of
the target is shared with HMT. We will take account of developments
in the economic cycle when reporting on this target.
— In Jobcentre Plus areas we will introduce work-focused
meetings for new Incapacity Benefit (IB) claimants and provide
additional support nationally through the New Deal for Disabled
People and other Jobcentre Plus programmes.
— Targets and key indicators will be set through
the Jobcentre Plus Performance and Resources Agreement, to support
the delivery of continuous improvements in job outcomes for disabled
people who are without work.
— We will develop, for SR 2004, measures of the
effectiveness of support for people with health problems before
and after they make a claim for IB in reducing the numbers dependent
on IB and increasing the numbers working.
— We will develop a new target to be included in
SR2004 to improve the speed with which the medical assessment
process is completed and the decisions implemented.
— For the second part of this target, we will develop
a measure of the gap in opportunities between disabled people
and non-disabled people.
Annex E
OVERSEAS COMPARISONS
1. Below is some factual information of the experiences
that some other countries have in tackling the growth in the numbers
claiming incapacity-related benefits.
Definition of Disability
2. There is no single definition of disability. Within
the UK different definitions are used in particular contexts.
For example the definition used for discrimination legislation
varies from that used for the purposes of claiming certain benefits.
Because work disability is difficult to define, the policy issues
surrounding disability insurance are more complex than those related
to other cash benefits. In some circumstances, disability may
be defined as the loss of ability to perform specific social roles
or functions due to an impairment resulting from a medical condition,
which can be physical or mental. The definitions vary from country
to country. Disability programs of different countries also differ
significantly in terms of benefits provided.
3. However invalidity/disability insurance is the central
concern of a number of Member States. Absences due to incapacity
for work are constantly increasing partly due to overall increase
of people in work and to falling standards of working conditions.
Many governments have announced changes to invalidity benefits.
The aim is to assess capacity for work and to make returning to
work a financially attractive option.
Experiences of other Countries
In Europe:
Denmark
4. In Denmark, Anticipatory Pension becomes payable after
52 weeks of sickness. In theory an application for this pension
can only be considered after all measures including activation,
rehabilitation and treatment have been taken. In practice, the
Association of Local Authority suggests that legislation is not
enforced as strictly as it perhaps should be. If the local authority
can judge (perhaps with guidance from doctor) that rehabilitation
is likely to be without effect, they do not force it on the individual.
A few years ago, funding arrangements were changed in the hope
that it would be possible to reduce the number of persons receiving
anticipatory pension. The local authorities now pay 65% of this
pension. Considering the fact that local authorities will have
to pay this pension for many years, they will be inclined to do
as much as possible to get the person into work.
5. Rehabilitation could take any form as long as the
main objective of getting the person back into a job (or maintaining
a job) is fulfilled. Rehabilitation will always be tailored to
the person's needs and there is in practice no limit on what this
could be. These could be on the-job training, courses of any length
from a few weeks to several months, longer education (could be
as long as teacher training for instance), and special projects
established by the local authority etc. One local authority has
stated they will often encourage the person to undertake on the
job training as they have found that many drop out of longer education.
6. People not entitled to Anticipatory Pension can only
receive some kind of financial help if they take up an offer of
rehabilitation. If declined, the person will be offered cash benefit,
which is means-tested, or if eligible, the person will receive
the insurance-based unemployment benefit. When receiving either
of these they will need to take part in offers of activation,
so for this reason an offer of rehabilitation is seldom declined.
Also if a person takes up an offer of rehabilitation, which provides
on job training, they receive a starting salary on the—job
instead of the lower rehabilitation benefit. In other words, although
it is not stated in the law that rehabilitation is compulsory
in these cases, there is a strong incentive to take up the offer.
Germany
7. In Germany, a person is eligible to receive Invalidity
Pension if they are considered to be 50% disabled. A grading system
is used to assess the degree of disability on a scale of 10% to
100%. This determines whether someone is entitled to certain benefits
or support schemes. Vocational rehabilitation is defined as "all
measures which are necessary to maintain, improve, establish or
re-establish the employability of people with disabilities or
those threatened with disability and to secure their long-term
participation in the labour market.
8. There are also financial incentives for employers
to hire people with disabilities, including wage subsidies, financial
support for disability-related changes to the workplace as well
as schemes, which allow people with disabilities to try out a
profession or a vocational training programme. In addition to
measures of vocational rehabilitation there are also measures
of medical rehabilitation (including psychological assistance),
financial assistance (such as benefits) to maintain a certain
standard of living and measures to assist social participation.
9. People with disabilities are entitled to all vocational
rehabilitation measures, which are necessary and appropriate;
and rehabilitation measures may only be applied if the affected
person agrees to them. The idea is to encourage people to take
responsibility for their own life. Official recognition of a disability
is not a prerequisite for participation in vocational and other
forms of rehabilitation; but it may be required to get access
to benefits and support schemes for people with severe disabilities.
10. In practice, unemployed people with disabilities
first call on their job centre where they apply for unemployment
benefits. As part of the registration process, they have to answer
questions about their health and about the reasons for their unemployment.
People with disabilities usually provide evidence of their disability
at this point; people who do not qualify as disabled but believe
that they are should make a claim or produce a health assessment
from their GP. If the job centre doubts someone's claim it may
ask the official job centre doctor or psychologist to assess the
claimant. Job centre doctors and psychologists are especially
trained to assess the impact of disabilities on people's employability.
11. The only element of compulsion in the system of vocational
rehabilitation is that people with disabilities may lose temporarily
their entitlement to support schemes or benefit payments if they
turn down appropriate jobs, which have been offered to them, or
if they refuse to take part in rehabilitation measures. However,
reluctance to take part in rehabilitation programmes is not a
problem in Germany. On the contrary, the Federal Labour Institute
(former Employment Service equivalent) said that usually many
more people want to take part in rehabilitation programmes than
really need them. It is not uncommon for people who want to change
jobs to try to join vocational re-training schemes, claiming that
they are disabled. Job centre staff therefore have to assess carefully
who really needs vocational rehabilitation.
Outside Europe:
Australia
12. Disability Support Pension (DSP) can be claimed after
two years of sickness if claimants agree to take steps to improve
their capacity for work. The Government proposes to change the
criteria for claiming this benefit from July 2003. This means
that DSP claimants, who can work for 15 hours a week or more and
get full pay with the help of rehabilitation or employment assistance
may no longer get DSP. They may qualify for other payments such
as Newstart Allowance. (Means-tested Unemployment Benefit)
13. People aged 55 years and over will no longer have
their local labour market conditions taken into account in determining
their eligibility for DSP. Most people affected by the new rules
who are unable to find work or who are undertaking work-related
support programs would receive or remain on Newstart Allowance.
14. The new DSP criteria will place a stronger emphasis
on people's capacities and capabilities, while there will also
be more support to help people with disabilities find employment.
DSP will continue to provide financial support for people with
disabilities who have limited capacity for economic participation,
while ensuring that those with greater capacity remain active
in the labour market.
15. These changes will build on a significant change
programme that is already underway as part of the Australians
Working Together (AWT) package announced in 2001. The AWT package
includes a range of measures to:
— employ and train more people with disabilities,
as well as older workers, improve the way the work capacity of
people who apply for DSP are assessed;
— provide additional help for people with disabilities
to find work or access vocational education and training;
— improve financial incentives for people with disabilities
to take up part-time and casual work with the introduction of
Working Credit; and
— increase opportunities for people with disabilities
to engage in employment through the Prime Minister's Community
Business Partnership, which encourages business to employ and
train more people with disabilities, as well as older workers.
USA
16. The Bush Administration has introduced "Ticket
to Work" which is designed to help Americans with disabilities
return to work. Social Security and Supplemental Security Income
(SSI) disability benefits receive a Ticket that may be used to
obtain vocational rehabilitation, job training, and other support
services. Initially, 13 states will participate in the Ticket
Program gradually increasing to USA-wide coverage by January 2004.
Individuals may take their Ticket to any of the employment service
providers who offer services in their communities. These providers
are called Employment Networks. The network and the Ticket holder
together design an individual employment plan outlining the services
to be provided to assist the beneficiary in reaching his or her
employment goal. The Ticket Program is voluntary. Social Security
and SSI beneficiaries who receive a Ticket are not required to
work, but may choose to use their Ticket to attempt to go to work.
Similarly, Employment Networks are not required to accept Tickets.
17. The Ticket Program is designed to provide people
with disabilities with more choices and expanded opportunities
to help them go to work. Individuals will receive free services
from an Employment Network. The Social Security Administration
will pay the Employment Networks for successfully helping a beneficiary
go to work. Employment Networks may choose to be paid based solely
on helping an individual achieve self-sufficiency, or they may
choose to receive payments when beneficiaries achieve different
milestones during their attempt to go to work.
24
Pathways to work: Helping people into employment published on
18 November 2002, Command Paper 5690. Back
25
Simplicity, security and choice: Working and saving for retirement
published 18 December 2002, Cm 5677. Back
26
"Evaluation of the Code of Practice on Age Diversity in Employment"
can be downloaded free of charge from the DWP website www.agepositive.gov.uk
or obtained by writing to DWP Publications, Age Strategy Team,
W8d, Moorfoot, Sheffield, S1 4PQ. Back
27
Incapacity Benefit Short Term (Lower) Rate. Back
28
Incapacity Benefit Short Term (Higher) Rate. Back
29
Incapacity Benefit Long Term Rate. Back
| 
